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US President Donald Trump said his administration has reached a framework agreement with China to keep TikTok operational in the United States, adding that he will speak to Chinese President Xi Jinping on Friday to confirm the deal. The announcement came as Trump signed an executive order on Monday night extending the deadline for a US ban on the app until 16 December, foreign media reported.

The extension is the fourth postponement of the 2024 law that requires TikTok's Chinese owner ByteDance to divest its US operations or face a ban. The previous deadline was due to expire on 17 September. The new order gives ByteDance 90 more days to conclude a final agreement.

The outline agreement was negotiated in Madrid between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Officials said the framework involves transferring TikTok's US assets into American-led ownership, with reports suggesting that a consortium of US investors, including Oracle, Silver Lake and Andreessen Horowitz is under consideration, though the White House has not confirmed these details.

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One unresolved issue is TikTok's recommendation algorithm, the technology that drives its content feed. A Chinese cyber security official in Madrid said the framework includes licensing of the algorithm and intellectual property rights, rather than a full transfer, foreign media reported. US lawmakers however, have warned that such an arrangement may not satisfy the 2024 law, which mandates a complete divestiture from Chinese control.

The House Select Committee on China has stressed that "there can't be any shared algorithm with ByteDance" if the framework is to comply with the law. Trump, meanwhile, has argued he would "hate to see value like that thrown out the window" if TikTok were shut down, noting that several "very big companies" are interested in buying its US business, though no final details have been announced. 

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Ankit Kumar is a Senior Sub Editor at Zee Business. He covers international affairs, politics, climate change, business, finance and global elections. With experience across digital med ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.