In a significant development for the popular social media app, US President Donald Trump stated that he and Chinese President Xi Jinping have reached an agreement on the future of TikTok’s operations in the United States. This announcement came after a phone call between the two leaders on Friday. While Trump expressed optimism, describing the call as “productive” and appreciating Xi’s “approval” of the deal, official confirmation from Beijing has been notably absent.
Chinese state media reported that President Xi welcomed discussions regarding TikTok, suggesting a willingness to engage. However, the exact nature of the agreement and its terms remain somewhat unclear. Trump’s post on Truth Social indicated that the deal would involve a sale of TikTok’s US business to a consortium of American investors, a move that could potentially resolve national security concerns that have surrounded the app.
TikTok, owned by the Chinese company ByteDance, has been under intense scrutiny in the US, with previous directives demanding the sale of its US assets or facing a potential ban. Trump has, at various points, delayed the enforcement of such measures, extending deadlines multiple times. The US Department of Justice has previously voiced concerns that TikTok’s access to user data could pose a national security risk.
The reported deal faces potential hurdles, particularly concerning the ownership of TikTok’s powerful algorithm, which is central to its user engagement. While details are scarce, the agreement may involve US firms, potentially including those associated with Trump allies, licensing the algorithm technology from ByteDance. This aspect of the deal has drawn scrutiny from some US lawmakers concerned about any continued influence of the Chinese Communist Party (CCP).
Trump’s approach to TikTok has evolved, with the platform now seen as a potentially important tool for his 2024 electoral campaign. This shift contrasts with his earlier calls for a ban. The US Supreme Court had previously upheld a law that would require ByteDance to divest its US operations, though the implementation has been repeatedly postponed.
This conversation between the two presidents marks their second this year, following discussions on trade and rare earth minerals. While progress has been made on some fronts, issues such as tech export restrictions and agricultural trade remain points of contention between the two global powers.