On Friday, President Trump hinted at a significant breakthrough, suggesting that China’s top leader, Xi Jinping, had given his blessing to a deal that would separate TikTok from its Chinese parent company, ByteDance.
Following a phone conversation with Mr. Xi, President Trump took to Truth Social, stating the call was ‘very good’ and expressing his appreciation for ‘the TikTok approval.’ While he noted progress on ‘many very important issues,’ including the TikTok agreement, details regarding the nature of this ‘approval’ remained scarce.
The official statement from China’s state-run news agency mirrored this ambiguity. However, it indicated President Xi’s openness to a business-oriented resolution for TikTok, emphasizing 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.’
For months, TikTok’s status in the United States has been uncertain. A federal law enacted in January mandated that the company either divest from its Chinese ownership or face a complete ban. This legislation was prompted by national security worries that Beijing could potentially exploit the app for propaganda or to gather sensitive American user data. Notably, President Trump had previously pushed back the deadline for compliance on four separate occasions.
ByteDance, TikTok’s current owner, has been engaged in protracted discussions for several months. The goal was to spin off the app’s U.S. operations into a new entity, bringing in American investors such as software giant Oracle, to diminish Chinese control and meet legal demands. Sources close to the negotiations revealed that the roster of prospective investors has frequently changed.
Adding a new layer to the saga on Thursday, President Trump announced that the United States would receive a ‘tremendous fee’ from the TikTok arrangement. Should this materialize, it would mark another instance of direct government involvement in private corporate transactions. Prior examples from the Trump administration include securing a 10 percent stake in Intel and a ‘golden share’ in U.S. Steel during its acquisition by Nippon Steel.
Previously, on Monday, Treasury Secretary Scott Bessent had initially revealed in Madrid that the U.S. had established a ‘framework’ for a deal to ensure TikTok’s continued operation within the country.
Chinese authorities had, in the past, strongly opposed any forced sale of TikTok. In 2020, China even updated its export control regulations to encompass critical technologies such as algorithms and source codes, making such a divestment more complex.
According to a statement released by Chinese state media, Li Chenggang, China’s vice minister of commerce, explained in Madrid that China agreed to a TikTok deal with the U.S. because ‘this consensus serves the interests of both sides,’ following discussions with American counterparts.
Just one day before TikTok’s mandated divestment deadline, President Trump had, on Tuesday, granted a fourth extension this year, pushing the decision to mid-December. With his latest comments on Friday suggesting a deal has been approved, this might finally be the last reprieve for the app.
Ana Swanson also contributed to this report.