For quite some time, Chinese officials vehemently opposed demands from the U.S. that TikTok’s Chinese parent company divest its American operations, labeling such pressure as outright extortion. Surprisingly, Beijing’s state-controlled media is now portraying recent discussions about exactly that as a mutually beneficial outcome.
In a recent phone conversation, Chinese President Xi Jinping and President Trump reportedly made “progress” on the “approval of the TikTok Deal,” among other topics. President Xi expressed a willingness to support a commercial resolution for TikTok that would prove advantageous to both nations.
While the much-anticipated phone call didn’t immediately finalize the TikTok agreement, President Xi’s readiness to even discuss the app with President Trump offers valuable insight into Beijing’s overarching strategic approach.
From China’s perspective, conceding on TikTok could present a significant symbolic victory for the American president—an opportunity to ‘save’ the immensely popular video app, which he believes was crucial to his re-election campaign. In return, Beijing would gain leverage to negotiate on its top priorities: trade tariffs, technological advancements, and the delicate issue of Taiwan.
Yun Sun, director of the China program at the Stimson Center in Washington, commented, “There are far more critical issues at stake.” She elaborated that if China can leverage these minor concessions to foster a more favorable environment and improve U.S.-China relations, they will certainly seize the opportunity, with TikTok serving as a prime example.
The Chinese government characterized the exchange as “pragmatic, positive, and constructive.” Regarding TikTok, President Xi affirmed his respect for the company’s preferences and expressed enthusiasm for “productive commercial negotiations” that adhere to both market principles and Chinese legal frameworks.
President Trump announced that he and President Xi would hold their first in-person meeting of Trump’s second term at an Asia-Pacific summit in South Korea next month, with a subsequent visit to China planned for early next year. However, Beijing’s official readout of the call conspicuously omitted any mention of these forthcoming meetings.
Indeed, TikTok appears to be a strategic bargaining tool for China. The app’s future in the United States, despite concerns about national security, is of far less importance to Beijing than pressing issues such as U.S. export controls and tariffs, which pose significant threats to China’s economic and technological growth.
Furthermore, TikTok’s core recommendation algorithm is now considered less groundbreaking and, consequently, less vital to China’s leadership compared to its significance at the outset of the app’s controversy five years ago.
According to Dimitar Gueorguiev, director of Chinese studies at Syracuse University, this context makes TikTok “an expendable concession.” He further explained that “Chinese officials deliberately allowed the issue to linger for years, reserving it as a potential solution to alleviate pressure from Washington.” Now, he noted, “a deal costs Beijing less than it would have at the beginning of negotiations, while still providing the strongest appearance of compromise.”
In Beijing’s strategic calculations, the opportune moment to play the TikTok card is now, particularly as China, given its dominant control over critical minerals, perceives itself to wield significant leverage in any upcoming discussions with President Trump.
Li Daokui, a distinguished economist at Tsinghua University in Beijing, observed, “The Chinese leadership is considerably more seasoned, patient, and tactically adept. They are acutely aware of what the U.S. desires and possess a clear understanding of Trump’s negotiation tactics.”
To persuade President Trump to reduce tariffs on Chinese goods, Beijing might propose increasing its purchases of U.S. soybeans—a long-standing public hope of the president—or committing to new orders for Boeing aircraft.
However, Beijing would need to execute such promises swiftly. Bidding for this year’s soybean harvest is already behind schedule, and Boeing’s production pipeline is rapidly being filled. Furthermore, China’s leaders contend with considerable risks when negotiating with an unpredictable figure like President Trump.
“They recognize the necessity of a trade deal to facilitate Trump’s visit to China,” Dr. Sun explained, “and they are keen to ensure that any agreement is irreversible—that they don’t expose themselves only for the U.S. to undermine their efforts.”
“While they cannot foresee if such a scenario will recur, they are well aware that if it does, it would be deeply humiliating for the Chinese leader,” she added.
Nevertheless, President Xi is expected to approach his upcoming meeting with President Trump next month with a sense of assurance. Far from being isolated by American pressure, he has consistently demonstrated Beijing’s extensive network of international allies. This was vividly illustrated earlier this month when he oversaw a grand military parade in Beijing, prominently flanked by Russian President Vladimir Putin and North Korean leader Kim Jong-un.
For several months, President Trump has expressed a keen interest in meeting the Chinese leader, whom he consistently refers to as a “good friend” and openly admires. Recent weeks have seen a notable acceleration toward such a meeting, marked by discussions between Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and their Chinese counterparts.
The Trump administration has also made moves perceived as advantageous to China. President Trump permitted the export of specific AI chips manufactured by Nvidia to China. Furthermore, in June, the White House advised President Lai Ching-te of Taiwan to cancel a planned stopover in New York, a visit that would have undoubtedly provoked strong protests from Beijing.
Henrietta Levin, a senior fellow with the Freeman Chair in China Studies at the Center for Strategic and International Studies, noted that Chinese leaders “have observed Trump’s readiness to engage in negotiations on matters previously deemed off-limits.”
China’s primary objectives include pushing Washington to relax export restrictions on advanced semiconductor chips and to diminish its support for Taiwan, which Beijing steadfastly asserts is an integral part of its territory.
According to Ali Wyne, senior research and advocacy adviser for U.S.-China relations at the International Crisis Group, China aims to demonstrate that the United States is “more inclined to secure a deal than Beijing itself.”
Chinese officials have indicated that the preliminary agreement reached in Madrid earlier this week with their U.S. counterparts—the fourth series of discussions in as many months—encompasses more than just TikTok. It reportedly includes provisions for reducing investment obstacles and enhancing broader trade and economic collaboration.
During their phone conversation on Friday, President Xi urged the United States to avoid imposing unilateral trade restrictions that could jeopardize progress in ongoing trade negotiations. He also expressed his hope that America would foster an “open and fair environment” for Chinese businesses seeking to invest in the U.S.
In their previous phone call in June, President Xi metaphorically described the U.S.-China relationship as a vast ship steered by two influential helmsmen. He cautioned President Trump to “avoid various disruptions or even sabotage,” seemingly alluding to the more aggressive voices within the Trump administration.
Mr. Wyne from the International Crisis Group suggested, “Significant disagreements exist between Trump and his advisors. China will probably try to explore and capitalize on these divergences.”
The mere fact that these two leaders are communicating at all indicates to some observers that the relationship is stabilizing. However, the trajectory of this stability will largely hinge on the outcome of their impending in-person meeting.
“Until then, we cannot definitively state that this is a truly stable and predictable relationship,” remarked Wu Xinbo, dean of the Institute of International Studies at Fudan University in Shanghai. “I can sense we are progressing in that direction, but the crucial benchmark will be the upcoming summit.”