Two years after U.S. lawmakers threatened to ban TikTok, Washington and Beijing have reached a tentative agreement on the future of the Chinese-owned platform.

U.S. Treasury Secretary Scott Bessent announced the breakthrough following trade talks with Chinese officials in Spain. He said U.S. President Donald Trump and Chinese Premier Xi Jinping are expected to speak on Friday to potentially finalize the deal.

According to Bessent, the agreement’s core objective is to transfer TikTok’s U.S. operations from its Chinese parent company, ByteDance, to American ownership. “This is about safeguarding national security while ensuring millions of Americans can continue using the platform,” he said.

The standoff dates back to former President Joe Biden’s administration, when Congress passed legislation threatening to ban TikTok in the U.S. unless ByteDance divested. Washington argued that Chinese laws compelling companies to hand over data posed an unacceptable risk to U.S. citizens’ privacy.

One of the thorniest issues—the control of TikTok’s algorithm, which shapes what users see in their feeds—appears to have been resolved. A Chinese representative confirmed that both sides reached consensus on authorizing its use under the new ownership structure.

Although no buyer has been confirmed, U.S. media reports indicate Oracle could lead a consortium to acquire TikTok’s U.S. operations, ensuring continuity of service for American users.

China’s delegation welcomed the progress, saying the two countries had achieved “basic framework consensus” not only on TikTok but also on reducing investment barriers and expanding economic cooperation.