US and China Reach Framework Deal on TikTok Ownership Amid Escalating Trade Tensions

US and China Reach Framework Deal on TikTok Ownership The United States and China have reached a framework agreement regarding the ownership of popular short-video sharing platform TikTok, according to Treasury Secretary Scott Bessent. The deal would allow TikTok to continue operating in the US. Bessent announced the development on Monday, following days of talks between the two nations. "The framework is for a switch to US-controlled ownership," he told reporters in Madrid. He added that US President Donald Trump and Chinese President Xi Jinping were scheduled to speak on Friday to finalize the agreement. China's Vice Minister of Commerce Li Chenggang confirmed the framework deal, stating that the two sides had reached a consensus on resolving issues related to TikTok through cooperation. "The basic framework consensus is on reducing investment barriers and promoting relevant economic and trade cooperation," he said in a statement carried by Chinese state news agency Xinhua. TikTok has been at the center of a contentious debate over data security and ownership, with some critics arguing that its Chinese parent company ByteDance poses a national security risk. The platform was briefly shut down in the US in January after Trump signed an executive order to give it more time for negotiations. The deal marks a significant development in the ongoing trade tensions between the two nations. While details of the agreement remain scarce, experts say it could have far-reaching implications for the tech industry and global trade. "This is a positive step towards resolving the TikTok issue," said Mark Cohen, a trade expert at Columbia University. "However, much work remains to be done to address the underlying concerns about data security and ownership." The US has been pushing for greater control over TikTok's operations in the country, citing national security concerns. China, on the other hand, has argued that the platform is not a threat and should be allowed to continue operating. As the two leaders prepare to discuss the final details of the agreement, analysts say it remains unclear what the future holds for TikTok in the US. "The framework deal is just the beginning," said Cohen. "We'll need to see how it plays out in practice." In a statement, ByteDance said it was committed to working with the US government to address its concerns and ensure the platform's continued success. The development comes as the two nations continue to negotiate a broader trade agreement. While the details of the TikTok deal remain unclear, experts say it could have significant implications for global trade and the tech industry. Background: TikTok has been at the center of a contentious debate over data security and ownership since its acquisition by ByteDance in 2016. The platform's popularity among young people across the globe has made it a target for regulators and lawmakers concerned about national security. Additional Perspectives: "This deal is a win-win for both countries," said Li Chenggang, China's Vice Minister of Commerce. "It demonstrates our commitment to cooperation and reducing investment barriers." "We're pleased that the US and China have reached an agreement on TikTok," said a spokesperson for ByteDance. "We look forward to working with the US government to address its concerns and ensure the platform's continued success." Current Status: The framework deal marks a significant development in the ongoing trade tensions between the two nations. While details of the agreement remain scarce, experts say it could have far-reaching implications for the tech industry and global trade. As the two leaders prepare to discuss the final details of the agreement, analysts say it remains unclear what the future holds for TikTok in the US. *Reporting by Dw.*