Trump Pauses TikTok Divestment Deadline as U.S., China Near Deal Over App’s Future

President Donald Trump on Tuesday again delayed enforcement of a 2024 law that would force Chinese-owned ByteDance to sell TikTok’s U.S. operations or face a nationwide ban, saying negotiators have reached a framework for a deal with China and that he will speak to President Xi Jinping on Friday to finalize terms.

The move, the fourth postponement since Trump began his second term, clears time for talks aimed at keeping the short-form video platform available to about 170 million American users while addressing U.S. national security concerns about Chinese influence over the app and its algorithms.

People familiar with the negotiations and reporting in the Wall Street Journal described a Madrid meeting this week that produced a framework for a new U.S.-based company to control TikTok. Under the reported plan, American investors would hold roughly an 80% stake while Chinese shareholders would retain just under 20%. The consortium said to be involved includes Oracle, Silver Lake and Andreessen Horowitz, along with existing ByteDance backers such as Susquehanna International, KKR and General Atlantic.

Oracle would be responsible for housing U.S. user data at facilities in Texas, the Journal reported, and the new company’s board would be dominated by Americans, with one seat designated by the U.S. government. Negotiators have discussed licensing arrangements under which Chinese developers would allow American software engineers to replicate content-recommendation systems for U.S. users, a person familiar with the matter told reporters.

Chinese officials confirmed movement toward an agreement. Wang Jingtao, deputy director of China’s top cyberspace regulator, said Beijing and Washington had reached “a basic consensus” on resolving the dispute and that China was open to licensing TikTok’s algorithm and other intellectual property while entrusting operations of U.S. user data to a new entity.

A central sticking point in negotiations has been the algorithm that drives TikTok’s recommendation engine. U.S. officials have insisted the system be controlled and maintained by an American engineering team insulated from Chinese influence. Beijing has resisted fully relinquishing control of technology developed in China, making algorithm governance one of the most sensitive aspects of the talks.

The 2024 law that could have led to the app’s nationwide ban was signed by President Joe Biden. After Trump took office, he issued multiple executive orders instructing the Justice Department to postpone enforcement, repeatedly giving ByteDance time to secure a sale or a structural fix that would meet U.S. security requirements. Tuesday’s order again delays the deadline that had been set for Wednesday.

Members of Congress who backed the measure and some national security officials remain skeptical that any arrangement involving ByteDance technology can fully eliminate perceived risks. Final approval of any deal will require signoff from U.S. national security agencies, and lawmakers have said they will scrutinize governance, data controls and enforcement mechanisms.

Negotiators in Madrid also discussed the possibility of an in-person meeting between Trump and Xi later this year; Beijing has pushed for a Trump visit to China to finalize the agreement. Trump said he planned to speak with Xi on Friday to confirm the deal. The White House and Chinese government did not immediately provide additional comment Friday; requests for comment were reported to be pending.

U.S.-China relations have been strained in recent years by trade disputes, tariffs and broader competition over technology and influence. Officials on both sides framed the reported talks as an effort to resolve one high-profile flashpoint, but details remain subject to change as legal, technical and political reviews proceed in Washington and Beijing.