On Friday, President Trump indicated that China’s top leader, Xi Jinping, had given his nod to a deal that would separate TikTok from its current Chinese parent company, ByteDance.
Via a post on Truth Social, President Trump shared that his call with Mr. Xi was ‘very good’ and they would speak again, adding, ‘appreciate the TikTok approval.’ However, he offered no details about what this approval truly signifies.
A report from China’s state-run news agency echoed this vagueness, yet it suggested Mr. Xi is open to a business-driven resolution for TikTok. The report quoted Mr. Xi as stating 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.”
TikTok’s fate in the United States has been uncertain since January, when a federal mandate took effect, demanding the company divest from its Chinese owner or face a nationwide ban. This legislation was prompted by national security worries that the app’s ownership might enable Beijing to disseminate propaganda or gather sensitive American user data. Notably, President Trump has already postponed this deadline four times.
For several months, ByteDance has been engaged in discussions to spin off TikTok’s U.S. operations into a separate entity. The aim is to introduce new American investors, such as software giant Oracle, thereby reducing Chinese ownership and meeting legal requirements. Sources close to the negotiations indicate that the roster of potential investors has been fluid.
Adding another layer to the narrative, President Trump announced on Thursday that the United States would collect a ‘tremendous fee’ for facilitating this deal. Should this come to pass, it would mark another instance of the government’s increasing involvement in corporate transactions. Recently, the Trump administration has secured a 10 percent stake in Intel and a ‘golden share’ in U.S. Steel during its acquisition by Nippon Steel.
Treasury Secretary Scott Bessent had previously unveiled a ‘framework’ for a deal to ensure TikTok’s continued operation in the U.S. during a Monday news conference in Madrid.
It’s worth noting that Chinese officials had previously expressed strong opposition to a forced sale of TikTok. In 2020, China even revised its export control regulations to encompass critical technologies like algorithms and source codes.
According to Chinese state media, Li Chenggang, China’s vice minister of commerce, explained in Madrid that China agreed to a deal with the U.S. on TikTok because ‘this consensus serves the interests of both sides,’ following his meeting with American counterparts.
Just one day before TikTok’s mandated divestment from ByteDance, President Trump granted an extension until mid-December – the fourth such reprieve this year. Given his latest announcement of a deal approval, this extension might indeed be the last.
Additional reporting for this story was provided by Ana Swanson.