Washington has reached a "framework" deal with China on TikTok's US operations, paving the way for American ownership, as the world's two biggest economies negotiate a trade deal, BBC reported.

The framework was set in talks in Madrid, US Treasury Secretary Scott Bessent said on Monday, adding that President Donald Trump and Chinese leader Xi Jinping would "complete" the deal on Friday.

Trump said on Truth Social that the talks had "gone very well". China confirmed a framework agreement but said no deal would be made at the expense of their firms' interests.

A Wednesday deadline looms for TikTok's Chinese owner to find a buyer for US operations or face a ban in the country over national security concerns, according to BBC.