US President Donald Trump on Monday hinted that an agreement has been reached with China allowing TikTok to continue operating in the American market, just days before the September 17 deadline his administration had set for the Chinese-owned app to comply with US ownership rules. Although Trump did not name TikTok directly, he referred to “a certain company that young people in our country very much wanted to save” in a post on his social media platform, Truth Social.

Trump also announced he would be speaking with Chinese President Xi Jinping on Friday, amid ongoing trade talks in Europe. “The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly,” he wrote, though there was no official confirmation from China.

The fate of TikTok was a key item on the agenda during the trade discussions held in Spain, as the US pushed for ByteDance, TikTok’s Chinese parent company, to divest its ownership, transferring majority control to a US entity. This demand is part of a broader effort by the Trump administration to address concerns over data security and Chinese influence.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer told reporters that China was seeking trade and technology concessions in exchange for agreeing to divest from TikTok. Bessent also noted that any extension of the divestment deadline would depend on the progress of talks.

Banning TikTok outright has been a complex issue for the US government. Experts like Alicia Garcia-Herrero, a senior fellow at think tank Bruegel, explain that China is hesitant to give up TikTok because it could set a precedent for other forced sales of Chinese companies in the West. At the same time, the app’s popularity among young Americans makes a ban politically sensitive.

China, meanwhile, maintained its stance without offering new updates. At a Beijing press conference, Chinese foreign ministry spokesperson Lin Jian reiterated that China’s position on TikTok has been consistent. In a move seen as retaliation, China’s market regulator also announced a preliminary investigation into US chipmaker Nvidia for alleged anti-monopoly violations.

The talks come amid wider tensions involving US tariffs on Chinese goods and related disputes with other countries like India, reflecting the ongoing complexity of US-China trade relations.