The United States has announced a “framework” agreement with China aimed at resolving the dispute over TikTok, just days before a federal deadline that could see the Chinese-owned app banned in the country.
US President Donald Trump hinted at the breakthrough on his Truth Social platform, writing that a deal was reached with “a certain company that young people in our Country very much wanted to save. They will be very happy!” He added that he is scheduled to speak with Chinese President Xi Jinping on Friday.
What does the TikTok deal mean?
US Treasury Secretary Scott Bessent confirmed the agreement after two days of negotiations with Chinese Vice Premier He Lifeng in Madrid. “We have a framework for a TikTok deal,” Bessent told reporters, adding that Trump and Xi will finalize the details during their upcoming call.
The negotiations come as a federal law requiring TikTok’s sale or ban on national security grounds is set to take effect the day before Trump’s inauguration on January 20. Trump, who had initially supported banning or forcing divestment of the app, later reversed his stance after acknowledging TikTok’s popularity with young voters during his 2024 campaign. The deadline for a sale or ban expires on Wednesday after a 90-day extension granted in June.
How does this tie into the US-China trade dispute?
Talks in Madrid extended beyond TikTok, covering broader trade tensions between the two nations. Earlier this year, both governments imposed heavy tariffs on each other’s goods, leading to disruptions in global supply chains. Although punitive tariffs were later reduced to 30 percent on US imports of Chinese goods and 10 percent on US products entering China, this temporary truce is set to expire in November.
Beijing’s commerce ministry urged Washington to “work with China on the basis of mutual respect and equal consultations, to resolve each other’s concerns through dialogue and find a solution to the problem.”
What is happening in the semiconductor battle?
Tensions have also spilled into the semiconductor sector. Over the weekend, China launched two investigations into US chips, including an anti-dumping probe into integrated circuit imports and an inquiry into whether Washington discriminates against Chinese firms. On Monday, Beijing added that US chip giant Nvidia had violated antitrust rules and would face further investigation.
The semiconductor rivalry underscores the broader struggle for technological dominance between Washington and Beijing. With both governments under pressure to protect strategic industries, analysts believe the recent flurry of talks could set the stage for a potential Trump-Xi meeting later this year.
By Risper Akinyi
