In a significant phone call on Friday, U.S. President Donald Trump and Chinese President Xi Jinping engaged in discussions regarding the final details of a long-anticipated TikTok deal. This marks their first communication since June, reflecting the ongoing complexities and negotiations between the two nations. The Chinese ambassador to the United States characterized the conversation as “pragmatic, positive and constructive,” yet neither side emerged with a definitive breakthrough.
While specifics of the proposed deal remain undisclosed by both Beijing and Washington, reports suggest that the arrangement would involve the Chinese company ByteDance relinquishing control of TikTok to a newly formed U.S. entity. This entity would be responsible for operating the popular app, with a consortium of new investors and existing backers expected to own roughly 80 percent of the platform. ByteDance’s ownership stake would drop below 20 percent to comply with U.S. regulations. According to sources cited by the Wall Street Journal, resolving the related legal issues could extend the timeline for finalizing the deal by several weeks.
The potential TikTok deal represents a notable victory for China hawks within the U.S. Congress and the Trump administration, who have long raised concerns over the possibility that the app’s user data could be accessed by the Chinese government. They fear such access could allow Beijing to surveil American users and conduct influence operations. Trump’s own position on TikTok is complex; he initially sought to ban the app entirely in the U.S. but later utilized it as a platform to engage with younger voters during his reelection campaign.
In an interesting twist, Beijing has also attempted to frame the TikTok deal as a strategic win for Xi. Despite the loss of control over TikTok, experts argue that Xi could potentially gain leverage in future negotiations with Washington, particularly concerning ongoing trade disputes and China’s technology ambitions. The two nations are concurrently engaged in discussions around a broader trade agreement aimed at addressing issues such as curbing fentanyl production and reducing tariffs.
As the world watches this evolving situation, the outcome of the TikTok negotiations could have far-reaching implications, not only for U.S.-China relations but also for global tech policy moving forward.
