TikTok's deal negotiations continue following a conversation between Xi and Trump
US President Donald Trump and Chinese President Xi Jinping held a phone call on Friday to discuss the future of the video app TikTok and easing trade tensions. The conversation marked the first publicly known conversation between the two leaders in three months.
The phone call came amidst ongoing negotiations for TikTok's future in the US. Securing Beijing's approval for a previously negotiated framework agreement is seen as one of the last hurdles for the app's continued operation in the country.
Under this framework, TikTok's US assets would be transferred to US owners, but the app would continue to use ByteDance's algorithm. The US Congress passed a law requiring ByteDance to sell its US assets by January 2025, or face a US platform ban.
Regarding TikTok, China's position is that the Chinese government respects the will of companies. China welcomes companies negotiating based on market rules to find a solution that aligns with Chinese laws and regulations and balances interests.
The current status of negotiations between the US government and ByteDance is that a framework agreement has been reached. A consortium of American investors, including companies like Oracle, Silver Lake, and others, will acquire approximately 80% of TikTok US. ByteDance will retain less than 20%, and control will be shared among American and international stakeholders.
Trump expressed optimism about the conversation, stating that progress was made on many topics, including trade, fentanyl, the war between Russia and Ukraine, and the approval of the TikTok deal. However, it remains unclear whether a binding agreement on TikTok's future was reached during the conversation.
Trump has not yet implemented the law due to fears of angering TikTok's large user base. He has previously stated that he likes TikTok and it helped him get elected.
The Xinhua news agency reported that the call was positive and constructive. Xi Jinping is expected to visit the US at a later date, with Trump mentioning the possibility of meeting Xi Jinping at the APEC summit in South Korea in October and visiting China in early 2026.
Regarding trade tensions, the US should stop imposing one-sided tariffs, according to the Xinhua news agency. It remains to be seen how these discussions will impact the ongoing trade relationship between the two nations.
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