China Calls US-TikTok Deal a ‘Win-Win,’ to Review Technology and Intellectual Property Transfers
Beijing, September 17, 2025 — China has described the recently reached framework agreement to transfer ownership of the popular short-video app TikTok to U.S. control as a "win-win" outcome for both countries. The deal, which was negotiated during talks in Madrid, marks a significant step forward in resolving ongoing tensions between the world’s two largest economies over technology and national security issues.
According to an editorial published by the official People’s Daily, the agreement is grounded on principles of mutual respect, peaceful coexistence, and win-win cooperation. The editorial, authored under the pseudonym "Zhong Sheng" (“Voice of China”), a term conventionally used by the Chinese Communist Party to express foreign policy stances, emphasized that China will conduct a thorough review of TikTok’s technology exports and intellectual property (IP) licensing in accordance with Chinese law.
The deal focuses on transferring TikTok’s U.S. assets from its Chinese parent company ByteDance to U.S.-based ownership. This move aims to address U.S. government concerns about data security and the potential Chinese influence over an app boasting approximately 170 million U.S. users.
Key Developments and Next Steps
The framework agreement comes after months of complex negotiations that were temporarily stalled earlier this year, especially following the imposition of steep U.S. tariffs on Chinese goods under the administration of former President Donald Trump. However, renewed diplomatic engagement during recent talks in Madrid, involving Chinese trade officials including negotiator Li Chenggang and representatives from China’s Cyberspace Administration, has paved the way for this progress.
Investors and market watchers on both sides of the Pacific are now awaiting a scheduled call between U.S. President Donald Trump and Chinese President Xi Jinping later this week, during which the TikTok agreement is expected to be formally confirmed. This development is seen as critical not only in resolving the TikTok dispute but also as a foundation for advancing other trade and economic discussions aimed at moving beyond the current tariff truce.
U.S. Treasury Secretary Scott Bessent, who met with Chinese negotiators in Madrid, indicated that a September 17 deadline — which could have led to TikTok’s suspension in the United States — may be extended by up to 90 days. This extension would provide the necessary time to finalise the details of the ownership transfer without interrupting service to U.S. users.
Broader Implications
The TikTok deal represents a delicate balancing act amid growing scrutiny of Chinese technology companies operating globally. It underscores increasing efforts by both the U.S. and China to establish frameworks regulating cross-border technology transfers and intellectual property rights, which have emerged as pivotal points of contention in broader trade and national security dialogues.
By framing the resolution as a mutually beneficial solution, China signals its readiness to cooperate while safeguarding key technological assets and IP rights domestically. At the same time, the U.S. aims to mitigate potential security risks associated with foreign-controlled social media platforms.
As the world watches the unfolding of this landmark agreement, the outcome is likely to set important precedents for future U.S.-China engagements on technology governance, data security, and investment oversight.
Reporting by Joe Cash; Editing by Christopher Cushing and Muralikumar Anantharaman
© 2025 Reuters
