The United States and China are nearing an agreement over the future of TikTok’s US operations, with officials signalling that a resolution could be reached as trade talks continue in Madrid.

The negotiations, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, have focused on TikTok’s ownership, tariffs, and broader economic issues.

The deadline for ByteDance, TikTok’s Chinese parent company, to divest its US assets or face a ban is set for 17 September, but sources suggest the Trump administration is likely to grant a fourth extension.

Bessent told reporters, “I think on the TikTok deal itself, we are very close or we’ve resolved the issue. There are a range of other asks that are unresolved.”

He added that the Chinese delegation had made an “aggressive ask” during the talks, though he did not elaborate. US Trade Representative Jamieson Greer noted that the Chinese side views the TikTok negotiations as part of a broader package, including tariffs and other longstanding trade measures. “We are not willing to sacrifice national security for a social media app,” Bessent said.

President Donald Trump, who has extended the divestment deadline three times since January, was noncommittal about TikTok’s future, telling reporters, “We may let it die, or we may, I don’t know, it depends, up to China. It doesn’t matter too much. I’d like to do it for the kids.” Trump’s stance on TikTok has softened since his re-election, with the app gaining popularity among American users and even the White House launching its own account.

The talks in Madrid are the fourth round in as many months, following previous meetings in Geneva, London, and Stockholm.

The delegations last met in July, when they agreed to extend a tariffs truce by 90 days, giving both sides more time to address trade and national security concerns. Experts expect the most likely outcome to be another extension of the TikTok deadline, rather than an immediate breakthrough.

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