President Trump declared on Friday that Chinese leader Xi Jinping had given his approval for a deal aimed at separating the wildly popular social media app, TikTok, from its parent company, ByteDance.
“He approved the TikTok deal,” Mr. Trump informed reporters at the White House. Yet, he also hinted that significant work remained to be done and offered minimal specifics about the potential agreement. “We have to get it signed,” he emphasized.
“The TikTok deal is well on its way,” he added, expressing anticipation for its conclusion.
These remarks followed a post earlier in the day on Truth Social, Mr. Trump’s own social media platform, which he made after a conversation with Mr. Xi.
Mr. Trump’s post read: “The call was a very good one, we will be speaking again by phone, appreciate the TikTok approval.” He further stated, “we made progress on many very important issues,” including the TikTok deal’s approval, without elaborating on what this approval entailed.
A statement from a Chinese state-run news agency regarding the call was similarly imprecise. However, Mr. Xi’s comments suggested support for a commercial resolution for TikTok. The report quoted Mr. Xi as saying the Chinese government “respects the wishes of the company in question and is glad to see business negotiations in line with market rules and a solution that conforms to Chinese laws and regulations and takes into account the interests of both sides.”
TikTok’s status in the United States has been precarious since January, when a federal law mandated that the company find a non-Chinese owner or face a ban. This legislation aimed to address national security fears that Chinese ownership could enable Beijing to disseminate propaganda or gather sensitive American data. Mr. Trump has now extended this deadline four times.
For months, ByteDance has engaged in discussions to spin off TikTok’s U.S. operations into a new entity and to bring in new American investors, such as the software giant Oracle. This move is intended to dilute its Chinese ownership and meet the legal requirements. Sources close to the talks noted that the roster of potential investors has been fluid.
Mr. Trump appeared to suggest that the deal would follow this divestment model.
“These are American investors, all of them, and they all love our country. They’re all very well known people, very famous people, actually, financially,” he stated.
In a statement issued Friday, ByteDance expressed gratitude to both leaders for “their efforts to preserve TikTok in the United States.” The company affirmed its commitment to “work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.”
The app’s future has also become intertwined with broader trade discussions between the United States and China, involving ongoing negotiations over tariffs, China’s mineral supply, and other contentious issues. In his Friday post, Mr. Trump mentioned plans to meet Mr. Xi at a South Korea summit this fall and to visit China early next year, with Mr. Xi reciprocating.
Historically, some of Mr. Trump’s high-profile deal announcements have not fully materialized. This year alone, he has declared several trade agreements, only for some foreign partners to later dispute the terms he described. For instance, trade deals with Vietnam and South Korea, announced in July, are still pending completion.
His past agreements with China have also faced challenges. In 2020, the president announced a trade deal where China pledged to purchase an additional $200 billion worth of American goods and services by 2021. However, a 2022 analysis of trade data revealed that China had only fulfilled 57 percent of its export commitments.
During his Friday discussion of the call—both in a social media post and later to reporters—Mr. Trump did not explicitly address the core national security concerns that have fueled a six-year debate over whether the incredibly popular app should be permitted on American phones.
At the heart of the matter is the control over TikTok’s proprietary algorithm, which observes user choices as they scroll through videos and tailors new recommendations accordingly. This algorithm is key to the app’s addictive nature and is often considered TikTok’s most valuable asset.
Chinese law dictates that this algorithm must remain under Chinese control. However, when Congress passed the law requiring the American version of the app to be overseen by U.S. owners, the intention was to prevent China from utilizing the algorithm to disseminate misinformation or disinformation within the United States.
Mr. Trump assured reporters, “It’s all being worked out. We’re going to have very good control.” He then added concerning the American investors, “they’ll have control of it.”
These comments, however, left ambiguity as to whether he referred to control over the new American-created company or the crucial algorithm itself.
Earlier in the week, Mr. Trump hinted that the United States might receive a “tremendous fee” for facilitating the deal. If this comes to pass, it would mark another instance of government involvement in corporate deal-making. In recent months, the Trump administration has already negotiated and secured a 10 percent stake in Intel, and a “golden share” in U.S. Steel as part of its sale to Nippon Steel.
When questioned about a potential fee on Friday, Mr. Trump stated, “it hasn’t been fully negotiated, but we’ll get something.”
Treasury Secretary Scott Bessent initially revealed on Monday that the United States had a “framework” for a deal to ensure TikTok’s continued operation in the country. This announcement was made during a news conference in Madrid.
Previously, Chinese officials had vowed to oppose a forced sale of TikTok, and in 2020, they updated their export control list to include technologies like algorithms and source codes.
China agreed to reach an understanding with the United States on TikTok because “this consensus serves the interests of both sides,” Li Chenggang, China’s vice minister of commerce, stated in Madrid after meeting American officials, according to a readout published in Chinese state media.
On Tuesday, just one day before a deadline for TikTok to separate from ByteDance, Mr. Trump issued another extension—the fourth this year—pushing the deadline to mid-December. With the president’s recent suggestion of a deal approval, this extension could potentially be the final one.