China on Wednesday praised the framework deal reached in Madrid to transfer TikTok’s US assets to American ownership. State media described the agreement as a “win-win” outcome. The People’s Daily editorial stressed that the deal reflected principles of mutual respect, peaceful coexistence, and cooperation.
Leaders to Confirm Agreement
Investors now await a scheduled call between US President Donald Trump and Chinese President Xi Jinping on Friday. The conversation is expected to confirm the agreement and set the stage for further trade discussions.
Key Step in US-China Relations
TikTok, with 170 million US users, has become central to bilateral tensions. Progress on the app is seen as vital for expanding negotiations beyond the current tariff truce. Reuters reported that the new deal mirrors one discussed earlier this year. That earlier arrangement collapsed after Trump imposed steep tariffs on Chinese goods.
Intellectual Property Review Planned
The People’s Daily, under the pen name “Zhong Sheng,” signaled China’s intention to review TikTok’s technology exports and licensing. It emphasised that any decisions would follow domestic laws.
Deadline Extension Possible
US Treasury Secretary Scott Bessent, after meeting Chinese negotiators in Madrid, said the September 17 deadline could be extended. He noted that an additional 90 days may be granted to finalise the agreement, though he withheld specific details.
Trump announces TikTok deal
President Donald Trump on Tuesday announced an agreement between the United States and China to keep TikTok operational. Three sources familiar with the matter revealed that the deal closely resembles one discussed earlier this year.
TikTok’s American Assets To Be Transferred
The agreement requires TikTok’s American assets to be transferred from China’s ByteDance to US ownership. This step potentially ends a dispute that dragged on for nearly a year. The app, which counts 170 million American users, has been at the center of political and economic tensions.
Breakthrough After Months of Talks
A deal marks a breakthrough after months of intense negotiations between the world’s two largest economies. Both sides have sought to defuse a trade war that has rattled global markets. Trump confirmed at a White House briefing that several large companies want to buy TikTok. However, he avoided providing further details.
