Thursday, October 1, 2026
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Washington, DC (WNN)- Officials have confirmed that the U.S. and China have agreed on a "framework" for a TikTok deal. The deal could change how TikTok is owned and let the popular app stay in the U.S. This news comes just a few days ahead of a deadline that could have banned the app for millions of users.
After trade talks in Madrid, Treasury Secretary Scott Bessent told reporters that both sides have reached an agreement on a framework for a TikTok deal. Bessent and other top economic officials from the U.S. and China started these discussions on Sunday.
These discussions are part of an ongoing effort to address many things, such as trade issues, export controls, and a U.S. law from last year that bans TikTok, which is putting pressure on its parent company, ByteDance, to sell to an American buyer. President Trump has delayed the law from going into effect three times as his administration continues to negotiate with China.
"We have a framework for a TikTok deal. The two leaders, President Trump and Party Chair Xi, will speak on Friday to complete the deal, but we do have a framework for a deal with TikTok."
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer
U.S. Department of the Treasury and Office of the U.S. Trade Representative
Bessent and U.S. Trade Representative Jamieson Greer did not share details on how exactly the framework deal will work. The deal won't be finalized until Trump and Chinese leader Xi Jinping have their call on Friday, September 19. Bessent noted that the two leaders will likely review the details during the call.
On TruthSocial, Trump said the two countries were close to a deal, saying the Madrid meetings had gone "VERY WELL!" He added, "A deal was also reached with a 'certain' company that young people in our country very much wanted to save. They will be very happy!"
U.S. President Donald Trump's official statement on TruthSocial.
TruthSocial
In 2024, Congress approved the Foreign Adversary Controlled Applications Act. The act required ByteDance, a Chinese company that currently owns TikTok, to sell the app to a U.S. company or face a nationwide ban.
TikTok went dark in the U.S. on January 18, right before Biden left office, as the law became effective. Since returning to office in January, Trump issued an executive order on his first day that postponed enforcement of the law for 75 days.
He added more extensions in June and September; the new deadline is September 17. However, officials have hinted that the date might be pushed back if they can't finalize things on time.
The Trump administration did not name the US-backed buyer, but it's widely believed to be led by Larry Ellison. Ellison is a billionaire who co-founded Oracle, one of the biggest tech companies in the U.S. The company provides software and cloud services to companies and governments worldwide. He also has political connections with Trump. In January, Trump said he would support Ellison in acquiring the app's U.S. assets.
In the past few months, other investment groups have expressed interest in buying TikTok. Notably, one led by former Los Angeles Dodgers owner Frank McCourt and investor Kevin O'Leary from "Shark Tank" has made some public appeals to own the app, even presenting an offer to ByteDance.
However, the price tag for TikTok is expected to be far beyond what they can afford—possibly in the tens of billions. So, they've suggested buying just the US assets of TikTok without its algorithm, which hooks users into watching video after video on the platform.
Many believe Ellison is in a stronger position to lead a group of investors who could buy TikTok's U.S. assets, including its algorithm, thanks to his company's current connections with the platform.
Trump and Xi will review the framework in their upcoming call on September 19. Until that happens, a lot is still up in the air, including whether Trump will decide to extend the ban deadline again.
The outcome of these discussions will determine who owns TikTok and whether millions of Americans can continue using the app. Currently, TikTok has an average of about 170 million users in the U.S.
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