In a significant development, the United States and China are reportedly on the brink of finalising a deal regarding the popular short-video app TikTok. US Treasury Secretary Scott Bessent announced on 15 September 2024 that the two nations have reached a “basic framework consensus” during trade talks held in Madrid. This comes as the deadline for TikTok to secure a buyer looms closer, with both sides eager to resolve the ongoing tensions before the situation escalates.
Details of the Ongoing Talks
During the two-day discussions, US and Chinese negotiators sought to bridge their differences related to trade and technology, which have been a strain on the relationship between the world’s two largest economies. Bessent noted that progress is being made, stating, “We’re very close to resolving the issue” regarding TikTok.
- The deadline for TikTok to find a buyer or face a ban is set for 17 September 2024.
- Chinese Vice Premier He Lifeng is involved in the negotiations alongside Bessent.
- The deal is expected to involve some transfer of intellectual property rights and possibly algorithms.
Implications of the Deal
While the specifics of the agreement are yet to be disclosed, the deal hopes to preserve TikTok’s cultural identity, something that Chinese officials consider important. But as Bessent put it, the US is primarily focused on national security concerns over TikTok’s ownership, given the platform’s vast user base of 170 million in the country.
There are fears that the data collected from US users could be accessed by the Chinese government, prompting a recent law passed by Congress that ensures TikTok’s divestiture.
Trade Relations Beyond TikTok
The negotiations not only cover TikTok but also broader issues stemming from a tumultuous trade history. The US has previously imposed steep tariffs on Chinese imports, leading to a back-and-forth trade war. Recently, Bessent and He have had discussions in various European cities to tackle these matters.
As the world watches closely, any breakthrough in US-China relations could have significant impacts beyond just social media, influencing global markets and trade policies around the world.