The United States and China have reached a framework deal regarding TikTok, Treasury Secretary Scott Bessent said Monday.

The agreement would allow the short-video sharing platform to continue operating in the United States.

"The framework is for a switch to US-controlled ownership," Bessent told reporters in Madrid, following days of talks.

He said US President Donald Trump and Chinese President Xi Jinping were scheduled to speak on Friday to "complete" the agreement.

China's Vice Minister of Commerce Li Chenggang confirmed the framework deal.

"The two sides reached a basic framework consensus on resolving issues related to TikTok through cooperation, reducing investment barriers and promoting relevant economic and trade cooperation," Li  was quoted as saying by Chinese state news agency Xinhua.

"China will firmly safeguard the national interests, the legitimate rights and interests of Chinese enterprises," he added.

The video platform is immensely popular among young people across the world, including in the US.

The TikTok countdown deadline

The US Congress last year threatened a ban on TikTok unless its Chinese parent company, ByteDance, sold its controlling stake.

Lawmakers were concerned about how the company handles US-based user data amid open questions regarding Chinese government influence.

Trump has repeatedly extended the deadline for shutting down the popular app since returning to office in January.

In mid-June, he extended the deadline by 90 days, moving it to September 17, to allow time to find a non-Chinese buyer or face a ban in the United States.

Edited by: Darko Janjevic