US President Donald Trump said he and Chinese President Xi Jinping agreed on a deal regarding TikTok’s future in the US during a phone call on Friday. Trump wrote on Truth Social that the call was “productive” and that he “appreciated” Xi’s approval of the deal. Reports suggest the deal would involve TikTok’s US business being sold to American investors. However, Beijing has not confirmed this.
TikTok, owned by Chinese company ByteDance, has faced pressure from Washington to sell its US operations or face a ban. Trump has delayed this ban four times since January and extended the deadline again this week to December this year.
Trump to meet Xi thrice
In his post, Trump said the two leaders had “made progress” on trade issues. He added: “I also agreed with President Xi that we would meet at the Apec Summit in South Korea, that I would go to China in the early part of next year, and that President Xi would, likewise, come to the United States at an appropriate time”.
The regional summit is taking place at the end of October in South Korea.
Speaking to reporters on Friday, Trump said that the deal still needed to be signed but hinted that a formal process could happen soon. “We look forward to getting that deal closed,” he said, adding that the US would have “very tight control” of the app.
Role of US companies in the deal
The deal would reportedly include a group of US firms, such as Oracle, co-founded by Trump ally Larry Ellison. This arrangement would allow TikTok to continue in the US, using algorithm technology licensed from ByteDance.
However, there is a key sticking point – who will own the powerful algorithm that serves content to TikTok’s 170 million American users?
During a visit to the UK with British Prime Minister Keir Starmer, Trump avoided answering whether a new algorithm would have to be built or if the current one could still be used, according to a report by the BBC.
Still, Trump praised the app’s potential: “The people that are investing in it are among the greatest investors in the world. And they’ll do a great job – and we’re doing it in conjunction with China.”
China’s official response
Xinhua reported that China’s stance is “very clear”. It said Beijing supports firms in “conducting commercial negotiations based on market rules and reach[ing] solutions that comply with Chinese laws and regulations and a balance of interests.”
The agency also added: “We hope that the US will provide an open, fair and non-discriminatory business environment for Chinese companies to invest in the United States.”
ByteDance issues statement
On Friday, ByteDance released a statement saying it would “work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US”.
The company thanked both leaders for “their efforts to preserve TikTok in the United States,” but its words left doubt about how close a final deal really is.