For years, Chinese officials vehemently opposed American demands for TikTok’s Chinese parent company to sell its U.S. operations, often labeling such pressure as outright theft. However, recent negotiations regarding this very issue are now being praised by Chinese state media as a ‘win-win’ outcome.
Following a phone call on Friday, President Trump announced ‘progress’ on the ‘approval of the TikTok Deal’ and other matters with Chinese leader Xi Jinping. Notably, Mr. Xi signaled his support for a commercial TikTok agreement that would be mutually beneficial.
While the highly anticipated phone call didn’t immediately finalize the TikTok deal, President Xi’s willingness to even engage President Trump on the matter offers crucial insight into Beijing’s evolving diplomatic strategy.
From China’s perspective, ceding ground on TikTok represents a strategic move to hand the American president a symbolic victory. This is particularly appealing to Trump, who credits the immensely popular video app with connecting him to younger voters and securing his re-election. In return, Beijing aims to gain leverage for negotiations on its most critical concerns: trade tariffs, technological advancements, and the sensitive issue of Taiwan.
Yun Sun, director of the China program at the Stimson Center in Washington, emphasized that ‘there’s much bigger fish to fry.’ She suggested that if China can utilize ‘small concessions’ like TikTok to foster a more positive climate and improve U.S.-China relations, they will readily pursue such opportunities.
Beijing officially characterized the discussion as ‘pragmatic, positive, and constructive.’ Regarding TikTok, President Xi stated his respect for the company’s wishes and expressed openness to ‘productive commercial negotiations’ that adhere to market principles and Chinese legal frameworks.
President Trump announced plans for an upcoming meeting with Xi Jinping at an Asia-Pacific summit in South Korea next month, marking their first in-person encounter of Trump’s second term. He also mentioned a trip to China early next year, though Beijing’s official readout of the call omitted any reference to these future meetings.
It appears TikTok is serving as a strategic bargaining chip for China. The app’s future in the U.S., where it faces national security concerns, is overshadowed by Beijing’s more pressing issues, including American export controls and tariffs that threaten to hinder China’s economic and technological growth.
Furthermore, TikTok’s core recommendation algorithm holds less strategic novelty and significance for Chinese leadership now than it did when the controversy surrounding the app first emerged five years ago.
Shou Zi Chew, TikTok’s chief executive, during a Senate Judiciary Committee hearing in 2024.
Dimitar Gueorguiev, director of Chinese studies at Syracuse University, views TikTok as an ‘expendable concession.’ He explained that Chinese officials have intentionally allowed the issue to linger for years, reserving it as a potential solution to alleviate future pressure from Washington. A deal now, he notes, ‘costs Beijing less than when negotiations started, while still yielding the maximum optics of compromise.’
Beijing’s strategic thinking suggests that now is the opportune moment to play the ‘TikTok card.’ Given its strong control over critical minerals, China perceives itself as holding significant leverage, which it intends to utilize in upcoming discussions with Mr. Trump.
Li Daokui, a distinguished economist at Tsinghua University in Beijing, remarked, ‘The Chinese side is much more experienced and has much more tolerance and is much more tactical.’ He added, ‘They know what the U.S. wants and they understand Trump’s negotiating style.’
To encourage President Trump to reduce tariffs on China, Beijing might propose increasing its purchases of U.S. soybeans—a move Trump has publicly expressed interest in—or committing to buy more Boeing aircraft.
However, Beijing would need to swiftly deliver on any such pledges. The window for bidding on this year’s soybean crop is closing, and Boeing’s production schedule is rapidly filling. Moreover, China’s leaders face considerable risks when negotiating with an unpredictable figure like Mr. Trump.
Dr. Sun elaborated, ‘They understand that there needs to be a trade deal to pave the ground for Trump to come to China, and they want to make sure this is not retractable—that they don’t put their hearts on the table and the U.S. just stabs it with a knife.’
She concluded, ‘They cannot predict whether or not that will happen again, but they know if it does, that will be humiliating for the Chinese leader.’
Nevertheless, President Xi is expected to approach next month’s meeting with Mr. Trump confidently. Rather than being isolated by U.S. pressure, Beijing has demonstrated a robust network of international allies. Earlier this month, Xi hosted an elaborate military parade in Beijing, prominently featuring President Vladimir V. Putin of Russia and North Korea’s Kim Jong-un by his side.
Mr. Xi was flanked by President Vladimir Putin of Russia and North Korean leader Kim Jong-un at a military parade marking the 80th anniversary of the end of World War II, at Tiananmen Square in Beijing in September.
For months, Mr. Trump has expressed a keen interest in meeting the Chinese leader, often referring to him as a ‘good friend’ and repeatedly voicing his admiration. Recent weeks have seen a clear momentum toward such a meeting, with high-level discussions between U.S. Secretary of State Marco Rubio and Defense Secretary Pete Hegseth and their Chinese counterparts.
The Trump administration has also implemented measures perceived as beneficial to China. For instance, Mr. Trump authorized the export of specific AI chips manufactured by Nvidia to China. Additionally, in June, the White House advised President Lai Ching-te of Taiwan to cancel a planned stopover in New York, a visit that would have drawn strong objections from Beijing.
Henrietta Levin, a senior fellow with the Freeman Chair in China Studies at the Center for Strategic and International Studies, noted that Chinese leaders ‘have seen Trump be willing to negotiate on issues that were previously nonnegotiable.’
China’s key objectives include persuading Washington to relax export controls on advanced semiconductor chips and to reduce its support for Taiwan, which Beijing asserts is an integral part of its territory.
According to Ali Wyne, senior research and advocacy adviser for U.S.-China relations at the International Crisis Group, China aims to demonstrate that the United States is ‘more eager for a deal than the other way around.’
Chinese officials have stated that a preliminary agreement reached in Madrid earlier this week with their U.S. counterparts—the fourth round of talks in four months—extends beyond the TikTok issue. This broader framework reportedly covers reducing investment barriers and enhancing trade and economic cooperation.
During their Friday conversation, President Xi urged the United States to avoid unilateral trade restrictions that could jeopardize progress in ongoing trade negotiations. He also expressed a desire for America to cultivate an ‘open and fair environment’ for Chinese businesses seeking to invest in the country.
A news conference with Chinese officials on the day of U.S.-China talks on trade, economic and national security issues, in Madrid in September.
In their previous phone call in June, President Xi likened the U.S.-China relationship to ‘a large ship kept on course’ by two skilled helmsmen. He cautioned Mr. Trump to ‘steer clear of various disturbances or even sabotage,’ a veiled reference to more hawkish elements within Trump’s administration.
Mr. Wyne of the International Crisis Group observed, ‘There are important differences of opinion between Trump and his advisers. China will likely seek to probe and exploit those differences.’
The mere fact that these two leaders are communicating at all suggests to some observers a potential stabilization of the relationship. However, the true trajectory will become clear following their upcoming in-person meeting.
Wu Xinbo, dean of the Institute of International Studies at Fudan University in Shanghai, commented, ‘Until then we cannot say for sure, OK, this is a relatively stable and predictable relationship.’ He added, ‘I can tell we are moving in that direction but the major indicator will be the forthcoming summit.’
Pei-Lin Wu contributed to this report.