WASHINGTON, Sept 15 (Reuters) - Questions and potential

hurdles surround a framework agreement announced on Monday

between the U.S. and China that would switch short-video app

TikTok to U.S.-controlled ownership, including whether any deal

will comply with a 2024 law.

U.S. and Chinese officials announced the deal in principle in

Madrid following trade talks, but did not give details or answer

key questions such as whether China will agree to transfer

ownership of the algorithm that makes the app so popular with

170 million Americans.

WHAT HAPPENS TO THE ALGORITHM?

During previous negotiations, Chinese authorities expressed

strong reluctance to allow the export of TikTok's recommendation

algorithm, widely seen as owner ByteDance's most valuable asset

and a key driver of the app's global popularity.

In 2020, when the Trump administration first pushed for a

sale of TikTok's U.S. business, China updated its export control

rules to cover technologies such as recommendation algorithms,

effectively giving the government a say over any transfer.

WILL CONGRESS NEED TO APPROVE THE DEAL?

Any agreement could require approval by the

Republican-controlled Congress, which passed a law in 2024

requiring ByteDance to divest TikTok or face a ban in the U.S.,

due to fears TikTok's U.S. user data could be accessed by the

Chinese government and allow Beijing to spy on Americans or

conduct influence operations through the app.

Since that law came into effect, U.S. President Donald Trump has

extended the deadline for its enforcement three times.

Some Democratic lawmakers argued Trump had no legal authority to

extend the deadline and suggested a previous deal under

consideration in April would not meet legal requirements.

Attorney General Pam Bondi sent letters to Apple

Google and other companies in February that provide

services or host TikTok, telling them the Justice Department was

relinquishing any claims for potential violations of the law.

They were made public in June.

A congressional aide told Reuters on Monday that lawmakers plan

to scrutinize the latest deal when it is made public to see if

it complies with the law.

WILL CHINA RETAIN ANY OWNERSHIP?

One issue is whether ByteDance will be fully divested from

TikTok U.S. after the deal.

Trump responded to a question in an Oval Office press

conference on whether China will have stake in TikTok: "We

haven't decided that, but it looks to me and I'm speaking to

President Xi on Friday for confirmation."

Senate Intelligence Committee chair Tom Cotton in April said

American investors who wanted to buy TikTok must cut all ties

with China.

ByteDance's current shareholders include American firms

Susquehanna International Group, General Atlantic and KKR.

If Congress rejects the latest agreement, Trump may have

limited recourse. In January, the Supreme Court unanimously

ruled the law, passed by an overwhelming bipartisan majority in

Congress last year and signed by former Democratic President Joe

Biden, did not violate the U.S. Constitution's First Amendment

protection against government abridgment of free speech.

WHO WILL CONTROL TIKTOK AFTER DIVESTITURE?

Officials expect the final deal to be very similar to what was

anticipated under the previous deal outlined in April, which

would spin off TikTok's U.S. operations into a new U.S.-based

firm, majority-owned and operated by U.S. investors. This

stalled after China indicated it would withhold its approval

following Trump's announcements of steep tariffs on Chinese

goods. The precise structure of the new expected ownership

remains unclear.