On Friday, President Trump seemed to indicate a breakthrough, hinting that Chinese President Xi Jinping had greenlit a deal to detach TikTok from its parent company, ByteDance.
Taking to Truth Social after his discussion with Mr. Xi, Trump declared their call ‘very good’ and expressed appreciation for ‘the TikTok approval,’ signaling future phone conversations. Yet, he simultaneously mentioned ‘progress on many very important issues,’ including the TikTok agreement, without offering specifics on the nature of this ‘approval.’
A report from China’s state news agency echoed this ambiguity. While President Xi seemed to endorse a market-driven solution for TikTok, the report stated 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 fate in the U.S. has hung in the balance since January. A federal law enacted then mandated that the company either find a non-Chinese owner or face a complete ban. This legislation aimed to alleviate national security fears that the app’s Chinese ownership could potentially be exploited by Beijing for propaganda or data collection from American users. Trump has already postponed this critical deadline four times.
For months, ByteDance has engaged in discussions to spin off TikTok’s U.S. operations into a new entity. The plan involves attracting new American investors, such as tech giant Oracle, to reduce its Chinese ownership and meet legal demands. Sources close to the negotiations revealed that the roster of potential investors has been constantly changing.
Adding a new layer to the narrative on Thursday, Trump stated that the U.S. would collect a ‘tremendous fee’ for facilitating the deal. Should this materialize, it would mark another instance of government intervention in corporate acquisitions. Recently, the Trump administration reportedly secured ‘a 10 percent stake’ in Intel and a ‘golden share’ in U.S. Steel during its acquisition by Nippon Steel.
Previously, Treasury Secretary Scott Bessent revealed a ‘framework’ for a TikTok deal during a Monday news conference in Madrid, aiming to ensure the app’s continued operation in the U.S.
Chinese officials had previously expressed strong opposition to a mandatory sale of TikTok. In 2020, China even updated its export control regulations to encompass critical technologies such as algorithms and source codes.
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,’ as reported by Chinese state media following his meeting with American officials.
Just a day before TikTok’s separation deadline, Trump had granted a fourth extension this year, pushing it to mid-December. Now, with his Friday hint of a deal’s approval, this latest extension might well be the last.