Treasury Secretary Scott Bessent announced that the United States and China have reached a final agreement on a TikTok deal, with Presidents Trump and Xi set to finalize it on Thursday in Korea. This follows a framework established in Madrid and an executive order signed by Trump to enable ByteDance’s sale of the app or face a U.S. ban.
Bessent first disclosed the Madrid framework last month during discussions between the two nations. President Donald Trump then issued an executive order to support the transaction, addressing national security concerns related to TikTok’s ownership by Chinese company ByteDance. This order mandates the divestiture to prevent a nationwide prohibition of the popular social media platform in the United States.
Appearing on CBS’s Face the Nation on Sunday morning, Bessent detailed the progress. He stated, “We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.” Bessent emphasized that the agreement covers all aspects of the deal, positioning the leaders to complete it during their upcoming meeting.
Bessent withheld specifics of the agreement during the interview. He explained his primary responsibility involved obtaining approval from Chinese authorities. “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days,” he said. These negotiations occurred amid broader diplomatic efforts between the two countries.
Trump has extended the deadline for ByteDance to comply with the divestiture law multiple times, allowing continued operation of TikTok in the U.S. while deal talks advanced. The executive order specifies that TikTok’s American operations, encompassing its recommendation algorithm, source code, and content moderation systems, will transfer to a newly formed board of directors. Oracle will oversee security operations for the platform under this arrangement.
Reported investors in the resulting joint venture include Oracle, headed by Larry Ellison, a known ally of Trump; Fox Corp, which owns Fox News; venture capital firm Andreessen Horowitz; and private equity group Silver Lake Management. Trump’s confirmation of Fox Corp’s involvement underscores the deal’s structure involving prominent U.S. entities.
Bessent delivered his remarks from Kuala Lumpur, Malaysia, where U.S. and Chinese trade negotiators concurrently achieved a framework agreement on tariffs and various trade matters. This parallel progress highlights interconnected economic dialogues between the nations.
U.S. trade negotiator Jamieson Greer addressed reporters on the trade talks, noting inclusion of rare earth minerals. He provided no further elaboration on their treatment in the discussions. “We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics,” Greer said. Rare earth minerals serve as essential components in semiconductor production and other technology manufacturing processes.
China has announced plans to impose stricter export controls on these minerals, impacting global supply chains for tech industries reliant on them.
