Trump announces TikTok deal with China, to speak to Xi on Friday; touts 'very well' trade talks in Madrid

File photo of US President Donald Trump and Chinese President Xi Jinping.

President Donald Trump on Monday said the latest round of trade talks between the United States and China in Madrid had “gone very well,” and added that the two sides had reached a deal involving a “certain” company, apparently referring to the dispute over TikTok.

In a post on Truth Social, Trump also said he would be speaking with Chinese President Xi Jinping on Friday.

“The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly. A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!! President DJT,” he wrote.

Shortly after, US Treasury Secretary Scott Bessent also announced the 'framework' deal between the two countries to resolve their long-prevailing dispute over TikTok.

Trump's remarks came as Bessent and Chinese Vice Premier He Lifeng opened the latest round of discussions in Madrid on Sunday, seeking to narrow differences on trade and technology that have strained relations between the world's two largest economies.

The meetings are expected to continue through Wednesday, which is also the deadline for TikTok to find a buyer or face a ban.

Earlier in the day, US Treasury Secretary Scott Bessent announced that the United States was "very close" to a deal with Beijing to settle their dispute over TikTok.

TikTok is owned by China-based internet company ByteDance.

A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before US President Donald Trump's inauguration on January 20.

But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause.

In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the United States. That extension is due to expire on Wednesday.

While Trump had long supported a ban or divestment, he reversed his position and vowed to defend the platform -- which boasts almost two billion global users -- after coming to believe it helped him win young voters' support in the November election.

Beijing's commerce ministry called on Washington on Friday to "work with China on the basis of mutual respect and equal consultations, to resolve each other's concerns through dialogue and find a solution to the problem".

The talks in Madrid also cover Trump's threat of steep tariffs on Chinese imports.

Trade tensions escalated sharply earlier this year, with tit-for-tat tariffs reaching triple digits and snarling supply chains.

Both governments later agreed to lower their punitive tariffs, with the United States imposing 30 percent duties on imports of Chinese goods and China hitting US products with a 10 percent levy, but the temporary truce expires in November.

The US-China trade truce has been an uneasy one, with Washington accusing Beijing of violating their agreement and slow-walking export license approvals for rare earths.

China is the world's leading producer of rare earths, used to make magnets essential to the automotive, electronics and defence industries.