As the September 17 deadline approaches, TikTok’s future in the United States hangs in the balance. The Biden administration has maintained pressure on Chinese parent company ByteDance to divest its U.S. operations or face a nationwide ban. However, ongoing U.S.-China trade negotiations in Madrid suggest that another extension is the most likely outcome.


High-Stakes Talks in Madrid


According to reports, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are leading discussions with Chinese Vice Premier He Lifeng. The talks, held at Madrid’s historic Palacio de Santa Cruz, are part of a broader effort to ease strained economic ties while addressing national security concerns tied to TikTok.


Bessent cautioned that China’s demands for trade concessions could complicate the process, stating:


Our Chinese counterparts have presented a very aggressive demand, but we will not compromise national security for a social media app.



TikTok’s National Security Challenge


Washington has long argued that TikTok’s ownership by ByteDance poses risks to U.S. data security, with lawmakers insisting that sensitive user information could be accessed by the Chinese government. To resolve the issue, the U.S. has demanded that ByteDance sell TikTok’s American assets to a U.S.-based company.


Failure to comply could see TikTok banned across the country, a move that would impact over 150 million U.S. users and the wider creator economy.


Trade Concessions Could Delay a Resolution


The negotiations are not just about TikTok. The U.S. has pressed China on its purchases of Russian oil and urged allies to consider tariffs on Chinese imports. Meanwhile, Beijing has used TikTok’s fate as leverage, pushing for economic concessions in return for cooperation.


Analysts believe this makes a final resolution unlikely in the immediate term. Instead, the most probable scenario is another extension of the TikTok divestiture deadline, giving both sides more time to find common ground.


What’s Next for TikTok?


This round of talks marks the fourth U.S.-China negotiation in four months, underlining the urgency of the situation. While TikTok continues to operate normally for now, uncertainty remains for creators, advertisers, and millions of users who rely on the platform.


If no agreement is reached by September 17, TikTok could face either a last-minute reprieve or a historic ban that reshapes the global social media landscape.