Catenaa, Friday, September 19, 2025- US President Donald Trump and Chinese President Xi Jinping are set to finalize a deal on Friday that would sell most of the US assets of TikTok to American investors.
On Monday, US Treasury Secretary Scott Bessent and Li Chenggang, China’s vice minister of commerce, announced that a framework for a TikTok sale agreement had been reached during negotiations held in Madrid between diplomats from both countries.
The proposal would allow TikTok to remain operational in the US. Former President Joe Biden signed a bipartisan bill passed by Congress that took effect on January 19, banning TikTok unless it ceded control of at least 80% of its assets to US operators.
But Trump multiple times paused the ban as his administration sought a sale via a deal with China.
Neither side has disclosed the terms of the agreement, because it has not been finalized. But sources familiar with the framework said the proposal would involve investments from a number of US-based venture capital firms, private equity funds, and tech companies.
Among the investors, who would hold the majority stake in the company, are Oracle, Andreessen Horowitz, and Silver Lake, the sources said. Chinese investors would own the remaining 20% of the company.
The new consortium would be operated by a majority-US board, including a member appointed by the Trump administration. The Wall Street Journal first reported on details of the framework.
The agreement and conversation are a precursor to a Trump-Xi meeting that both sides have sought for months, US officials said Monday, after the framework plan was announced. Without a TikTok deal in place, a meeting between Trump and Xi wouldn’t be possible, US officials said.
An agreement makes it more likely the two leaders will sit down when Trump visits Asia at the end of October, according to those officials.
