On Friday, former President Trump indicated that Chinese President Xi Jinping had seemingly given his blessing to a deal aimed at detaching TikTok from its Beijing-based parent company, ByteDance.
Following a conversation with President Xi, Mr. Trump took to Truth Social, stating, “The call was a very good one, we will be speaking again by phone, appreciate the TikTok approval.” He offered no further details on the nature of this supposed approval.
A report from China’s state-run news agency echoed this ambiguity, quoting President Xi as saying that the Chinese government “respects the wishes of companies and welcomes them to conduct commercial negotiations based on market rules and reach solutions that comply with Chinese laws and regulations and balance interests.”
The status of TikTok in the United States has been uncertain since January, when a new federal law mandated that the platform either find a non-Chinese owner or face a complete ban. This legislation was enacted to mitigate national security risks, specifically concerns that TikTok’s Chinese ownership could enable Beijing to disseminate propaganda or gather sensitive American user data. Notably, Mr. Trump has prolonged the compliance deadline on four separate occasions.
For several months, ByteDance has engaged in discussions aimed at separating TikTok’s American operations into an independent entity, introducing new U.S. investors, such as the technology behemoth Oracle. This move is designed to diminish Chinese ownership and meet the legal mandates. Sources close to the negotiations reveal that the roster of prospective investors has frequently changed.
Adding a new dimension on Thursday, Mr. Trump asserted that the United States would collect a “tremendous fee” for facilitating the TikTok agreement. Should this materialize, it would mark another instance of government involvement in private sector transactions. Recently, the Trump administration has reportedly secured a 10 percent share in Intel and a “golden share” in U.S. Steel, as part of its acquisition by Nippon Steel.
The initial revelation of a “framework” agreement to ensure TikTok’s continued operation in the U.S. came from Treasury Secretary Scott Bessent during a Monday news conference in Madrid.
Previously, Chinese officials had expressed strong opposition to any mandatory sale of TikTok. In 2020, China even updated its export control regulations to encompass critical technologies, including algorithms and source codes, which could impact such a sale.
According to Chinese state media, Li Chenggang, China’s vice minister of commerce, stated in Madrid on Monday, following discussions with American counterparts, that China opted for an agreement on TikTok because “this consensus serves the interests of both sides.”
Just a day prior to the ByteDance-TikTok separation deadline on Tuesday, Mr. Trump granted a fourth extension this year, pushing it to mid-December. Given the President’s recent remarks on Friday about a potential deal approval, this latest extension might well be the last.
Additional reporting was provided by Ana Swanson.