US and China Reach Framework Agreement on TikTok Divestiture

The United States and China have reached a framework agreement to switch the ownership of TikTok to US-controlled ownership, with the deal to be confirmed in a call between President Donald Trump and Chinese President Xi Jinping on Friday. The development comes as a deadline for ByteDance, the Chinese owner of TikTok, to divest the app loomed on September 17. US Treasury Secretary Scott Bessent said that it's possible the deadline could be extended to allow for the deal to be finalized.

Key Takeaways:

• The US and China have reached a framework agreement to switch TikTok's ownership to US-controlled ownership, with the deal to be confirmed by President Trump and President Xi Jinping on Friday.
• The agreement comes after months of negotiations, with the two sides meeting in European cities since May to resolve differences over trade, tariffs, and national security.
• The US had threatened to ban TikTok in the US if ByteDance didn't agree to divest the app by September 17.
• China had demanded concessions on trade and technology in exchange for agreeing to divest from TikTok, but the US refused to sacrifice national security for a social media app.
• The talks also addressed other issues, including tariffs on Chinese imports and the flow of rare earths to the US.

Statistics:

• The US and China have held four rounds of talks in four months to address strained trade ties and TikTok's looming divestiture deadline.
• The US had imposed tariffs on Chinese imports, prompting similar measures from China, including high import duties on US goods and a halt in the flow of rare earths to the US.
• TikTok has over 1 billion active users worldwide, with a significant presence in the US.

Sources:

• Reuters - Agencies
• HT Digital Content Services with permission from Ada Derana
• Trump's TruthSocial Platform
• Chinese government statement on the preliminary investigation of Nvidia