The Chinese Ministry of Commerce announced on Tuesday that China and the United States have reached a basic framework agreement to address issues surrounding TikTok, as part of broader trade and economic discussions.

The announcement followed bilateral talks held in Madrid on September 14 and 15, where Chinese Vice Premier He Lifeng met with US Treasury Secretary Scott Bessent and Trade Representative Jamison Greer. The ministry described the discussions as "frank, in-depth, and constructive," building on consensus established during earlier leadership-level conversations.

High-level officials from both nations engaged in direct talks in Madrid, highlighting the importance both governments place on resolving the TikTok dispute, which has been a point of contention in US-China relations for several years.

According to the Chinese statement, the parties agreed to a basic framework that outlines cooperative measures to resolve TikTok-related concerns. The agreement includes reducing barriers to investment, promoting mutual economic collaboration, and addressing TikTok-related issues through cooperation.

Further consultations are expected to finalize the text of the agreement and allow for domestic procedures in both countries to approve the deal.

Trump’s demands, national security concerns

US President Donald Trump had long pushed for ByteDance, TikTok's Chinese parent company, to divest its US operations, citing national security risks. His administration propagated concerns that the app could be used by Chinese authorities for surveillance or influence operations targeting American users. The US demanded not only ownership transfer but also control over TikTok's core algorithm.

While Trump set multiple deadlines threatening to ban the app, his administration extended negotiations several times, acknowledging TikTok's popularity among American youth and its political relevance.

With a basic consensus reached, both sides will now focus on formalizing the agreement. This includes internal reviews, legal vetting, and coordination between trade and technology regulators.

The TikTok negotiations remain closely linked to broader trade dynamics between the two powers, which have seen tariffs rise and fall sharply over the past year. At the peak of the trade war, the US imposed a 145% tariff on Chinese goods, while Chinese tariffs on American products reached 125%. As of May, both countries agreed to mutual tariff reductions, though some targeted levies, such as the 20% "fentanyl tariff" from the US, remain in place.