Alibaba Group Holding Limited ( BABA ) shares are trading higher ahead of President Donald Trump’s meeting with President Xi Jinping on Friday. Trump hinted that Friday’s meeting may include a deal regarding TikTok.

What To Know: Trump said he will speak with Xi on Friday in what would be the leaders' first direct engagement since June. In a post on social media, Trump called the relationship between the two countries "a very strong one" and added that talks between top officials in Madrid "has gone VERY WELL!"

The discussions in Madrid were led by U.S. Treasury Secretary Scott Bessent, who told reporters that a framework had been reached to keep ByteDance's TikTok app operating in the U.S. Bessent described the agreement as a step toward resolving a key sticking point in U.S.-China relations.

China's Vice Commerce Minister Li Chenggang echoed that view, saying a framework of "consensus" had been established, while also cautioning that Beijing would not sacrifice its principles in order to secure a deal. The remarks underscored both sides' recognition of progress but also the challenges that remain.

The details of the framework have not been disclosed. Questions remain over whether the blueprint will meet the requirements of a U.S. national security law that took effect earlier this year. A U.S. official emphasized that some form of arrangement was necessary in order for Trump and Xi to proceed with an in-person meeting later in the year.

The Madrid talks also carried significance for the broader trade relationship between Washington and Beijing. According to the report, the outcome on TikTok was essential to setting the stage for further negotiations and future high-level engagement.

Alibaba ( BABA ) stock may be trading higher on Monday on investor optimism around the upcoming Trump–Xi meeting and that progress on a TikTok framework could ease U.S.-China tensions.

BABA Price Action: At the time of publication, Alibaba ( BABA ) shares are trading 1.84% higher at $157.91, according to data from Benzinga Pro.

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