TikTok deal close? Why US wants China to divest- All about framework deal reached for continued social media app operations

TikTok users in the United States could be spared a potential closure following the Trump administration’s announcement of a framework agreement with China over the ownership of the popular social video platform.Trump, Xi to discuss final agreement US Treasury Secretary Scott Bessent said on Monday in Madrid that President Donald Trump and Chinese Premier Xi Jinping will speak on Friday to potentially finalise the agreement. The plan aims to transition TikTok to American ownership. “The commercial terms have been agreed upon,” Bessent said, without revealing specific details as the agreement involves private companies. China’s international trade representative Li Chenggang confirmed that both sides have reached a “basic framework consensus” on TikTok-related matters.Ownership and algorithm questions Oracle Corp. is reportedly a potential buyer, though the company has not commented publicly. Chinese official Wang Jingtao said the parties agreed on handling TikTok’s algorithm usage rights and delegating US user data security to a partner.Extended deadline for us operations Despite lacking clear legal authority, Trump has repeatedly extended TikTok’s deadline to avoid US restrictions. The next deadline is September 17, giving more time for negotiations on American ownership.Why the US is concerned and wants China to divest? The US government’s concerns focus on ByteDance’s Chinese origins, particularly data handling and algorithm control, which have prompted legislative scrutiny under both Trump and Biden administrations.During his first term, Trump sought to ban TikTok, citing threats to U.S. national security. However, upon returning for a second term, he reversed course, signing an executive order on his first day in office to allow the app to continue operating.Under President Joe Biden, lawmakers and the administration continued to raise national security concerns, pushing for a U.S. ban on TikTok unless its Chinese parent company sold its controlling stake.TikTok continues to operate for its 170 million US users, with major tech companies supporting the platform while awaiting a final decision. Public opinion has shifted, with roughly one-third of Americans now backing a ban, down from 50 per cent in March 2023. Bottom line: While a preliminary deal offers TikTok a temporary reprieve, key details—including ownership structure and data oversight—will only become clear after the Trump–Xi discussion on Friday.