US reaches outline for deal with China over Tik Tok

US and Chinese negotiators reached a framework deal on TikTok after two days of trade talks, a crucial step toward ending the yearslong saga over whether the video-sharing app can operate in America just days before it was set to be banned.

China had previously shown little appetite for a deal on the app. There is speculation that Beijing conceded to an agreement to keep alive the possibility of President Trump visiting China.

The deal will allegedly be confirmed by Trump and Chinese leader Xi Jinping on a call this coming Friday, Treasury Secretary Scott Bessent said. The outline for the deal came together as China escalates its regulatory campaign against Nvidia.

The Chinese regulator’s actions, according to sources familiar with the situation, was taken to provide Xi with political cover for the Tik Tok deal so that he wouldn’t appear weak to his domestic audience.

Scott Bessent said that a framework for switching ownership of Tik Tok has been reached. “We’re not going to talk about the commercial forms of the deal. It’s between two private parties, but the commercial terms have been agreed upon,” Bessent said.

The US and China were running up against a Wednesday deadline to do a Tik Tok deal, which had been extended multiple times. The two countries have been negotiating a Tik Tok deal since January.

While this is a sign of progress, it is far from guaranteed that a deal will be signed, and there may be more hurdles to finalizing the deal to come in the future.