China hails TikTok ownership deal as 'win-win' ahead of Trump–Xi call

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China on Wednesday welcomed a deal to shift TikTok's US operations into American-controlled ownership, calling it a "win-win" outcome, even as it said it will review technology exports and intellectual property licensing tied to the short-video app.

The state-run People's Daily said the consensus with Washington was based on "mutual respect, peaceful coexistence and win-win cooperation."

The commentary, signed "Zhong Sheng" — a byline signaling official policy positions — also stressed Beijing would handle TikTok's algorithm and technology transfers "in accordance with the law."

The agreement, reached in Madrid this week, comes ahead of a scheduled call Friday between US President Donald Trump and Chinese President Xi Jinping that is expected to seal it. 

US Treasury Secretary Scott Bessent said the September 17 deadline threatening to disrupt TikTok in America could be extended by 90 days to allow finalisation.

Trump had announced the deal Tuesday, framing it as a victory for US control over the platform’s 170 million American users. 

He said TikTok's US assets would be transferred from China's ByteDance to a consortium of American investors, in what officials described as a step toward "protecting national security and data integrity."

The move caps years of pressure from Washington on ByteDance, which has faced repeated threats of bans or forced divestment over fears the Chinese-owned app could hand user data to Beijing. 

Critics in Congress and the tech sector, however, remain wary, arguing that allowing ByteDance to retain its recommendation algorithm — the core technology behind TikTok’s viral success — leaves unresolved concerns over Chinese influence.

A similar deal to shift TikTok's ownership structure was hammered out earlier this year but collapsed after Trump imposed new tariffs on Chinese goods.