What's happened
US and China have agreed on a framework to transfer TikTok's US operations to US control, aiming to resolve long-standing security and trade issues. The deal, confirmed after negotiations in Madrid, could include licensing of proprietary technology and may influence tariffs and trade relations. A phone call between Trump and Xi is expected to finalize details today.
What's behind the headline?
The recent US-China agreement on TikTok signals a strategic shift in their trade and technology diplomacy. The deal's focus on licensing proprietary algorithms and technology rights indicates both sides aim to preserve their interests—China maintaining control over Douyin and related tech, while the US seeks security assurances. This framework could serve as a precedent for resolving other tech disputes, but its success hinges on political will and congressional approval. The potential easing of tariffs, especially on agricultural goods like soybeans, suggests a broader effort to de-escalate trade tensions. However, unresolved issues such as fentanyl precursor exports and ongoing technology restrictions imply that this is a cautious step rather than a comprehensive resolution. The upcoming phone call between Trump and Xi will be pivotal, potentially cementing the deal or exposing lingering disagreements. Overall, this development will likely influence global markets and US-China relations, signaling a pragmatic approach amid ongoing rivalry.
What the papers say
The South China Morning Post reports that negotiations in Madrid resulted in a framework agreement, with Chinese officials emphasizing the 'trusted operation' of TikTok's US data and content security. They also highlighted China's retention of control over technology exports and intellectual property. The Japan Times notes that the deal was a rare breakthrough in months of trade talks, with US Treasury Secretary Scott Bessent indicating that Chinese negotiators were encouraged by the September 17 deadline. SBS emphasizes that the deal could involve licensing of algorithms and intellectual property, with US officials stressing national security concerns. All sources agree that the deal is tentative, with final details to be confirmed in a call between Trump and Xi, and that broader trade issues, including tariffs and fentanyl exports, remain unresolved.
How we got here
The negotiations stem from US concerns over TikTok's data security and potential Chinese influence, leading to a deadline in September 2025 for ByteDance to divest US operations. Previous talks in 2024 and earlier this year failed to produce an agreement, but recent discussions in Madrid have resulted in a tentative framework. The broader context involves US-China trade tensions, tariffs, and technology restrictions, with both sides seeking to ease tensions through targeted deals.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
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TikTok/Douyin is a Chinese video-sharing social networking service owned by ByteDance, a Beijing-based Internet technology company founded in 2012 by Zhang Yiming.