The US treasury secretary has stated that Washington has reached a 'framework' deal with China concerning the ownership of TikTok's American operations. Scott Bessent mentioned that this framework was established during trade talks in Madrid, setting the stage for a transition to US ownership. Bessent indicated that President Trump and Chinese President Xi Jinping would complete the agreement on Friday.
Trump expressed optimism on Truth Social, asserting that talks had 'gone very well', while Chinese officials confirmed the existence of a framework deal, emphasizing that Chinese interests would not be compromised. A looming deadline exists for TikTok’s Chinese parent company, ByteDance, to sell its American branch to avoid a potential ban on the platform in the US.
Bessent disclosed the 'framework' deal amid ongoing negotiations aimed at resolving a trade war, noting that the US's ultimatum regarding TikTok's future pressured Chinese negotiators to retract certain demands related to tariffs on any sale. He underscored that the terms agreed upon would prioritize US national security interests.
Meanwhile, US trade representative Jamieson Greer noted that the deal, contingent on leaders’ approval, was not intended to create repetitive extensions of the ban. China’s trade negotiator, Li Chenggang, stressed that no agreement would be accepted at the expense of their principles and the interests of Chinese companies.
While the framework aims to address national security concerns, experts express skepticism about the complete control over TikTok’s data and algorithms. Notably, the deal could be pivotal given that ByteDance has become significant in the AI sector, potentially violating US national security as the data collected might enhance China's military capabilities in the future. The urgency is amplified as the deadline for the sale of TikTok's US operations approaches, with previous extensions already implemented and the next expected to lapse soon.
The intricate balance of control, data privacy, and international relations continues to put pressure on the TikTok ownership discussions, with potential buyers and users alike watching closely.
Trump expressed optimism on Truth Social, asserting that talks had 'gone very well', while Chinese officials confirmed the existence of a framework deal, emphasizing that Chinese interests would not be compromised. A looming deadline exists for TikTok’s Chinese parent company, ByteDance, to sell its American branch to avoid a potential ban on the platform in the US.
Bessent disclosed the 'framework' deal amid ongoing negotiations aimed at resolving a trade war, noting that the US's ultimatum regarding TikTok's future pressured Chinese negotiators to retract certain demands related to tariffs on any sale. He underscored that the terms agreed upon would prioritize US national security interests.
Meanwhile, US trade representative Jamieson Greer noted that the deal, contingent on leaders’ approval, was not intended to create repetitive extensions of the ban. China’s trade negotiator, Li Chenggang, stressed that no agreement would be accepted at the expense of their principles and the interests of Chinese companies.
While the framework aims to address national security concerns, experts express skepticism about the complete control over TikTok’s data and algorithms. Notably, the deal could be pivotal given that ByteDance has become significant in the AI sector, potentially violating US national security as the data collected might enhance China's military capabilities in the future. The urgency is amplified as the deadline for the sale of TikTok's US operations approaches, with previous extensions already implemented and the next expected to lapse soon.
The intricate balance of control, data privacy, and international relations continues to put pressure on the TikTok ownership discussions, with potential buyers and users alike watching closely.
