US says 'framework' for TikTok ownership deal agreed with China

Washington has reached a "framework" deal with China on TikTok's US operations, paving the way for American ownership, as the world's two biggest economies negotiate a trade deal.

The framework was set in talks in Madrid, US Treasury Secretary Scott Bessent said on Monday, adding that President Donald Trump and Chinese leader Xi Jinping would "complete" the deal on Friday.

Trump said on Truth Social that the talks had "gone very well". China confirmed a framework agreement but said no deal would be made at the expense of their firms' interests.

A Wednesday deadline looms for TikTok's Chinese owner to find a buyer for US operations or face a ban in the country over national security concerns.

The deadline for a sale has since been extended three times already and the latest delay is due to end on 17 September.

The BBC's US partner CBS reported late on Monday that Oracle was among a group of firms that would enable TikTok operations to continue in the US if a deal between Washington and Beijing is finalised.

The BBC has contacted Oracle, TikTok, the White House and the Chinese embassy in Washington DC for comment.

The ownership of TikTok has been a major sticking point in US-China trade talks. It was seen by observers as key to Beijing's efforts to negotiate lower tariffs and fewer trade barriers with the US, one of China's biggest markets.

Bessent announced the "framework" deal after the second day of negotiations to end a trade war which, at its peak, saw tariffs on some goods hit145%.

The agreed upon commercial terms would protect US national security interests, he added.

US trade representative Jamieson Greer, part of the delegation in Madrid, said the deal struck was "subject to the leaders' approval", but added his team was "not... in the business of having repetitive [ban] extensions".

China's top trade negotiator, Li Chenggang, said his country would not reach a deal with the US at the expense of its own principles and its leadership would review any deal before it was agreed.