During a phone call on Friday, former U.S. President Donald Trump and Chinese President Xi Jinping reached a tentative understanding over the future of TikTok’s U.S. operations. However, China has not formally confirmed the agreement.
In a post on Truth Social, Trump described the call as “productive” and said he appreciated Xi’s approval of a deal that would reportedly see TikTok’s U.S. business sold to American investors. However, China’s state-run news agency Xinhua offered a more cautious interpretation, quoting Xi as saying Beijing “welcomes negotiations over TikTok” but did not confirm any sale approval.
A Deal Still in Progress
TikTok, owned by Chinese tech giant ByteDance, has faced increasing pressure to divest its U.S. operations over national security concerns. The app was initially ordered to sell or shut down in early 2024. However, Trump has since delayed the enforcement multiple times, most recently extending the deadline to December.
Speaking to reporters, Trump clarified that a final deal has not yet been signed and expected a formal process soon.
“We look forward to getting that deal closed,” Trump said, adding that the U.S. would maintain tight oversight of TikTok’s operations in the future.
What’s in the Deal?
According to reports, the deal would involve a group of U.S. firms, potentially including Oracle — a company co-founded by Trump ally Larry Ellison — acquiring TikTok’s American business. ByteDance would license its proprietary algorithm technology to the new U.S. entity.
A key contention remains who controls the algorithm that personalises content for TikTok’s estimated 170 million U.S. users. Trump has so far avoided confirming whether the American buyers would need to develop a new algorithm or continue using ByteDance’s.
Still, Trump called TikTok a valuable asset:
“TikTok has tremendous value,” he said. “The people investing in it are among the greatest investors in the world.”
China’s Position: Cautious but Open
In response, Xinhua reiterated China’s expectation that any deal should adhere to Chinese laws and market principles, calling for a fair and non-discriminatory business environment for Chinese companies operating in the U.S.
Later in the day, ByteDance issued a statement reaffirming its commitment to keeping TikTok operational in the U.S. while complying with all applicable laws. The company also thanked both leaders for their efforts to preserve TikTok’s availability in the American market.
The company stated, “ByteDance will work according to applicable laws to ensure TikTok remains available to American users. “
Scepticism Among U.S. Lawmakers
Despite the progress, the proposed deal has drawn criticism from both sides of the political aisle. Some lawmakers warn that ByteDance’s ongoing involvement, particularly around the algorithm, could allow the Chinese Communist Party (CCP) to retain influence over the platform.
“I’m concerned the licensing deal may involve ongoing reliance on a ByteDance algorithm,” said Rep. John Moolenar (R-Michigan), chair of the House Select Committee on the CCP. “That could allow continued CCP control.”
A Political Shift on TikTok
Trump’s stance on TikTok has notably evolved. After previously calling for a ban during his presidency, he now sees the platform as a valuable tool for his 2024 election campaign, especially for reaching younger voters.
In January, the U.S. Supreme Court upheld legislation requiring TikTok to divest from ByteDance or be banned. The app briefly went offline before the enforcement was postponed.
The Department of Justice has repeatedly cited TikTok’s access to U.S. user data as a potential national security threat of “immense depth and scale.”
Part of a Broader Dialogue
Friday’s phone call was the second direct conversation between Trump and Xi this year. In June, the two leaders spoke about China’s rare earth exports, which led to an agreement allowing limited permits for U.S. companies.
While broader tensions remain — including U.S. tariffs on some Chinese imports, export controls, and disputes over tech and agriculture — officials from both countries have engaged in multiple rounds of dialogue in recent months to prevent further escalation.
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