A framework agreement has been established between the United States and China regarding the ownership of the popular social media platform TikTok. U.S. Treasury Secretary Scott Bessent announced the deal following trade talks held in Madrid over the weekend.

Bessent stated in a press conference that U.S. President Donald Trump and Chinese Premier Xi Jinping are scheduled to discuss the final details of the agreement on Friday. The primary goal of the deal is to transition TikTok to U.S. ownership. “We are not going to talk about the commercial terms of the deal,” Bessent said. “It’s between two private parties. But the commercial terms have been agreed upon.”

Li Chenggang, China’s international trade representative, confirmed that both nations have reached a “basic framework consensus” to address issues related to TikTok. He emphasized the importance of reducing investment barriers and enhancing economic cooperation. Li described the discussions as “candid” and “in-depth.”

This meeting in Madrid marks the fourth round of trade negotiations since Trump initiated a tariff war against Chinese goods in April. Bessent indicated that a fifth round of talks is anticipated in the coming weeks. Both governments are also considering a potential summit between Trump and Xi later this year or early next year to solidify a broader trade agreement. However, analysts caution that trade disputes could postpone this meeting.

Chinese officials did not provide immediate comments after the talks, but Vice Premier He Lifeng, who led the Chinese delegation, was seen smiling as he exited the venue.

During President Joe Biden’s administration, Congress and the White House cited national security concerns to impose a ban on TikTok unless its parent company, ByteDance, divested its controlling stake. Trump has extended the deadline for the ban multiple times, despite legal provisions allowing only one 90-day extension if a deal is in progress and Congress is notified. The current extension is set to expire on Wednesday, just two days before Trump and Xi are expected to discuss the framework deal.

Although Trump has not directly addressed the impending deadline, he has suggested that he could indefinitely delay the ban. TikTok, developed by ByteDance, has become a significant player in the social media landscape since its launch. The app gained immense popularity during the COVID-19 pandemic, with viral dance challenges becoming a staple of its content.

Despite its success, TikTok faces scrutiny from U.S. officials concerned about its Chinese ownership and the potential for data access by the Chinese government. The proprietary algorithm that determines user content has also raised alarms. TikTok's rise has prompted competitors like Instagram and YouTube to introduce their own short-form video features, known as Reels and Shorts, respectively.