US and China strike TikTok ownership framework deal

TL;DR:

US and China agreed on a TikTok ownership framework.
A Trump-Xi call on 19 Sep may confirm terms.
A 90-day extension is possible to finalize the deal.
IP and algorithm rights are still sensitive.
Congress may still need to approve.

On 15–16 September 2025, US and Chinese officials said they reached a framework to move TikTok to US-controlled ownership. The US Treasury Secretary pointed to progress in Madrid talks and said leaders would speak on Friday to confirm.

The timeline

Officials referenced a 17 September deadline that could have affected TikTok in the US, with a possible 90-day extension to close a deal. A leaders’ call is planned for 19 September 2025 India time, given time zone differences.

What is in the framework

Ownership: Transfer to a US-controlled entity is the goal.
Data controls: A third partner would handle US user data and content security.
IP rights: China signaled openness to license algorithm IP rather than transfer it outright.

What remains unclear

Whether ByteDance or Chinese investors keep any stake.
The buyer and governance structure.
The exact scope of algorithm access and updates. Reuters notes Congress could still be involved due to 2024 divestiture law.

Wider context

Talks sit inside a broader trade and tech standoff, from chip export controls to platform bans. Progress on TikTok may unlock space for further negotiations, but officials warned that other disputes remain.

What this means for users and creators

The app stays available while talks continue.
Changes to data storage and moderation will come if a deal closes.
Creators should track potential policy updates and brand rules during the transition.

Quick checklist for brands

Diversify channels to reduce platform risk.
Update influencer contracts with change-of-control clauses.
Monitor data sharing and ad targeting policies.
Prepare comms for policy shifts or outages.

What happens next

If the call confirms terms, expect due diligence, antitrust review, and security audits. A 90-day window would push any close into late 2025. Political backlash on either side could slow or break the deal. Reuters

Why it matters

A sale or control shift could settle a years-long dispute, keep TikTok running for 170 million US users, and set a template for cross-border governance of consumer algorithms.

Sources: