US and China Agree on TikTok Framework, Sidestepping Potential Ban

The United States and China have reached a framework agreement regarding the popular short-video application TikTok, a development that averts a potential shutdown of the platform in the U.S. The accord, announced on September 15, 2025, follows high-level discussions in Madrid and is designed to facilitate a transition to U.S.-controlled ownership.

U.S. Treasury Secretary Scott Bessent confirmed the finalization of commercial terms between the private parties involved. This agreement emerged during broader economic policy talks between the two nations, which also addressed tariffs and the illicit fentanyl trade. U.S. Trade Representative Jamieson Greer indicated that a short extension to the September 17 deadline might be granted to finalize the deal, provided this framework exists.

This development marks a significant moment in the ongoing dispute over TikTok's ownership, a matter that has raised national security concerns in Washington due to its parent company, ByteDance, being based in China. The U.S. had previously set an ultimatum, threatening a ban if China did not agree to divestiture terms related to tariffs and technological restrictions.

The U.S.-China technology rivalry has intensified over recent years, with data security and potential Chinese government influence at the forefront of discussions. This framework deal is a direct consequence of these tensions, which have seen previous attempts at resolution, including potential acquisitions by companies like Microsoft, Walmart, and Oracle, fail.

Historically, President Donald Trump issued an order in 2020 to divest TikTok or face a ban, followed by legislative action in April 2024 setting a nine-month deadline for ByteDance to sell the platform. The repeated extensions of this deadline highlight the complexity of the negotiations.

Beyond the immediate impact on TikTok and its estimated 135 million U.S. users, this agreement is part of a broader effort to stabilize the economic relationship between the two largest global economies. The discussions in Madrid also encompassed wider trade policies, reflecting the multifaceted nature of the U.S.-China relationship.

While the framework averts an immediate crisis for the platform, the specific details of the U.S.-controlled ownership model are yet to be fully outlined, leaving room for future developments. The resolution of the TikTok issue is viewed as a positive step in de-escalating trade tensions, although the underlying technological competition between the U.S. and China continues to influence global economic and security dynamics. The agreement demonstrates a pragmatic approach to navigating complex international relations, prioritizing dialogue and a structured resolution over outright prohibition.