(qlmbusinessnews.com . Sat 20th Sep, 2025) London, UK —
Trump and Xi Set to Finalize TikTok Agreement: What It Means for US Tech Security
The UK's financial chief disclosed that the United States and China have reached a preliminary “framework” agreement concerning the future of TikTok's operations in the US.
Scott Bessent announced during trade discussions in Madrid that steps were taken towards ensuring US proprietorship of the social media giant's American branch. He elaborated, saying that a final deal is expected to be sealed by US President Donald Trump and Chinese President Xi Jinping come Friday.
On Truth Social, Trump shared his positive outlook on the negotiations, saying they had proceeded “very well”. Although China acknowledged the framework agreement, it emphasised it wouldn't compromise the interests of Chinese enterprises in any final arrangement.
This development comes against the backdrop of a pressing deadline for TikTok's Chinese parent company to either sell its US division or face being shut down and banned across the United States.
Bessent revealed this “framework” on the second negotiation day aimed at concluding the ongoing trade skirmish between the two superpowers. He attributed the progress made to the looming threat of a TikTok ban in the US, which led Chinese negotiators to ease off on their demands for lower tariffs in the deal.
He assured that the terms agreed upon would safeguard US national security interests.
US trade envoy, Jamieson Greer, expressed that while the deal awaited the formal nod from both nations' leaders, his team was averse to further delaying the ban extension.
On the other hand, Li Chenggang, China's head negotiator, stated that any deal would have to align with Chinese principles and safeguard the interests of its companies, pending a thorough review by its leadership.
This negotiation follows recent US legislation supported by the Supreme Court in January 2024, which mandates ByteDance, TikTok's parent company, to divest its US operations due to national security concerns linked to user data access.
Despite ByteDance’s assurance of its US division’s autonomy and the absence of data sharing with the Chinese government, the proposed ban, citing a threat to national security, stirred debates on freedom of speech for TikTok's 170 million American users.
After the legislation's activation saw TikTok briefly go offline in January, Trump stepped in with a temporary reprieve. Since then, the ban's deadline has faced multiple extensions, the latest being until 17 September.
Potential buyers for TikTok have varied, with names like Oracle’s Larry Ellison, YouTuber MrBeast, and billionaire Frank McCourt being floated.
The agreement was purported to address US security concerns, yet details remained vague, igniting skepticism amongst experts regarding critical issues such as control over TikTok's influential recommendation algorithm and data protection for American users.
Cornell University’s Tech Policy Institute director, Sarah Kreps, and former national security official Jim Secreto, voiced their concerns, especially regarding the implications for the data privacy of US users and the potential for the data to advance China’s AI capabilities, inadvertently impacting national security.
The unfolding situation underscores the intricate balance between addressing security concerns and fostering international trade relations, with the future of TikTok’s US operations hanging in the balance.
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