China described the agreed framework agreement on Madrid on Wednesday on the transfer of the Tiktok application under American control as “a mutual gain”, according to an editorial published in the state press. Beijing has stated that it will analyze technology exports and licensing intellectual property related to the application.
The Tiktok app, which has about 170 million users in the United States/ Photo: Archive
The agreement is to be discussed in a telephone call scheduled for Friday between US President Donald Trump and his Chinese counterpart Xi Jinping. Investors on both banks of the Pacific are waiting for the confirmation of the understanding, which is considered essential for relaunching the bilateral economic dialogue.
The Tiktok application, which has about 170 million users in the United States, is at the center of a prolonged dispute between Washington and Beijing, against the background of data security and technological control.
The agreement stipulates that the American assets of Tiktok be transferred to owners in the US, from the Chinese company Bytedance, which could resolve a dispute that has for almost a year.
It would resemble an agreement previously discussed during the year, but which was suspended after President Trump announced new customs tariffs for Chinese products.
In a comment signed “Zhong Sheng”-a pseudonym commonly used by People's Daily to express the official position of the Chinese Communist Party in issues of foreign policy-it is stated that understanding was possible “based on the principles of mutual respect, peaceful coexistence and mutually advantageous cooperation.”
“China will review aspects related to technology exports and licensing intellectual property regarding Tiktok in accordance with the legislation in force.”is shown in the article.
The Secretary of the US Treasury, Scott Bessent, who led the negotiations with the Chinese side to Madrid, said that the deadline of September 17-the date the application could have been blocked in the US-could be extended by 90 days for the completion of the agreement. No other details on the content of the agreement were provided.
Bessent, said President Donald Trump on Tuesday, was willing to let Tiktok stop working in the United States, and this was “what changed the course” in negotiations with China, CNBC reports.
“President Trump clearly said that he would have been willing to let Tiktok close, that we were not going to give up national security in favor of understanding.”Bessent told CNBC, in the show “Squawk Box”.
The ByTedance parent company has a term until September 17 to sell its US operations or to risk the prohibition of the application on the American territory.
The Trump administration has not officially prolonged the deadline, but the US trade representative, Jamieson Greer, said Monday that it may take more time for the agreement to be completed and signed.
The White House opened its own Tiktok account last month. The administration already has almost one million followers on the platform.
“The children wanted it so much”Trump said Tuesday in front of the White House.
“I had parents who called me. They don't want it for themselves. They want it for their children. I say if they don't solve it, I'm in a big problem with their children.”
Among the potential American buyers discussed in recent months were Oracle, led by Larry Ellison, and Tesla, led by Elon Musk. CBS News reported on Monday that Oracle was among the “several companies” involved in transaction discussions, citing sources.
Oracle is already essential for Tiktok web infrastructure, Reuters said in January. According to the Agency, the White House was preparing an agreement with Oracle and a group of external investors to take over the operations of the application in the US, the cloud company will manage data collection and software updates.
