Officials announced that the deal would be finalized on a Friday call between US President Donald Trump and Chinese President Xi Jinping.

The news came after two days of talks in Madrid between US Treasury Secretary Scott Bessent and Chinese officials. Bessent stated the impending September 17 deadline, which threatened to shut down TikTok s operations in the US, prompted both camps to reach a potential agreement. The deadline can be delayed by 90 days to permit the deal to be completed, he added.

Though refraining from elaborating on details, Bessent asserted that the agreement would preserve aspects significant to Beijing while providing for Washington s security interests. "They want Chinese features of the app that they believe are soft power. We don t want Chinese features. We want national security," he said in response to questions from reporters.

This is the second instance in 2025 that the two parties have indicated progress on TikTok; previous negotiations in March broke down. Any binding agreement will need to be authorized by Republican-held Congress, which ordered divestiture in 2024 over fears Beijing might access TikTok s US data.

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Despite repeated warnings, the Trump administration has avoided an outright ban, wary of angering TikTok’s millions of users. Trump, who credits the app with aiding his re-election campaign, has 15 million followers on the platform.

Chinese negotiators suggested the deal could involve licensing technology, including algorithms, while voicing frustration over broader US tech restrictions.

The negotiations at Madrid s Palacio de Santa Cruz represented the fourth round of talks in four months, highlighting how TikTok has become a focal point in strained relations between the US and China.