On Friday, President Trump hinted that China’s top leader, Xi Jinping, had given the green light for a deal to divest TikTok from its parent company, ByteDance.
Following a phone call with Mr. Xi, Trump shared on Truth Social, ‘The call was a very good one, we will be speaking again by phone, appreciate the TikTok approval.’ He offered no further specifics about the nature of this approval.
A statement from a Chinese state news agency provided equally limited details, though it indicated Mr. Xi’s openness to a commercial resolution for TikTok. The report quoted Mr. 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.’
TikTok’s operational status in the U.S. has been uncertain since January, when a federal law mandated the company either sell to a non-Chinese entity or face a nationwide ban. This legislation was enacted due to national security fears that Beijing might leverage the app for propaganda or data collection on American citizens. President Trump has already postponed the deadline four times.
For several months, ByteDance has been engaged in discussions to establish a new company for TikTok’s American operations, seeking U.S. investors such as Oracle to diminish Chinese ownership and meet legal demands. Sources close to the negotiations indicate that the roster of potential investors has been unstable.
Adding a new layer to the situation on Thursday, Mr. Trump stated that the U.S. would gain a ‘tremendous fee’ from facilitating the deal. This would mark another instance of government involvement in private sector transactions, following the administration’s recent acquisition of a 10 percent stake in Intel and a ‘golden share’ in U.S. Steel during its sale to Nippon Steel.
Earlier this week, Treasury Secretary Scott Bessent had initially revealed a ‘framework’ for a deal that would allow TikTok to continue operating in the U.S., making the announcement at a news conference in Madrid.
Previously, Chinese officials had expressed strong opposition to a mandatory sale of TikTok. In 2020, China updated its export control regulations to encompass critical technologies, including algorithms and source codes, complicating any divestment.
Li Chenggang, China’s vice minister of commerce, stated in Madrid that China agreed to the TikTok deal because ‘this consensus serves the interests of both sides,’ as reported by Chinese state media after his meeting with American counterparts.
Just one day before TikTok’s deadline to separate from ByteDance, Mr. Trump granted a fourth extension this year, pushing it to mid-December. With his recent suggestion of China’s approval, this latest extension might finally be the last.
Ana Swanson contributed reporting.