A senior Chinese official said on Monday that the United States and China had reached a framework agreement on the future of TikTok, while stressing that Beijing will protect its national interests.

"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," Vice Minister of Commerce Li Chenggang was quoted as saying by Xinhua news agency.

"China will firmly safeguard the national interests, the legitimate rights and interests of Chinese enterprises," Xinhua quoted him as saying as Washington and Beijing hold high-stakes trade talks in Madrid.

Wang Jingtao, deputy director of the Cyberspace Administration of China, said the deal could licence intellectual property rights, including algorithms.

Aside from TikTok, the US has cited national security concerns to block shipments of semiconductors and other advanced technology to China, and ban Chinese products that Washington has alleged could be used to spy on Americans or gather intelligence.

Li told reporters that those concerns amounted to "unilateral bullying", and that Washington had overstretched the concept of national security.

"The United States cannot on the one hand ask China to take care of its concerns, and on the other hand continue to suppress Chinese companies," Li said.

He said China urges the United States to correct its mistakes and lift such restrictions as soon as possible.

The framework agreement on TikTok came after a second day of talks between Vice Premier He Lifeng and US Treasury Secretary Scott Bessent in Madrid.

Bessent confirmed the framework deal, but declined to give further details, saying Presidents Xi Jinping and Donald Trump will speak on Friday to "complete" the agreement.

He said the idea is to have the popular short-video app switch to “US-controlled ownership”, adding that when commercial terms of the deal are revealed, it will preserve cultural aspects of TikTok that Chinese negotiators care about.

TikTok – which boasts almost two billion global users – is owned by China-based internet company ByteDance.

A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before US President Donald Trump's inauguration on January 20.

But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause.

In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the United States. That extension is due to expire on Wednesday.

In a social media post, Trump said – without directly naming the social media giant – that a deal was reached with a "certain company that young people in our Country very much wanted to save. They will be very happy!" (Agencies)