Washington: US President Donald Trump has announced that he and Chinese President Xi Jinping have tentatively agreed on a deal regarding TikTok's US operations during a recent phone call. However, there has been no official confirmation from Beijing.
According to BBC, Trump stated on Truth Social that the conversation was "productive" and expressed his appreciation for Xi's approval of the proposed deal. The agreement would reportedly involve selling TikTok's US business to a group of American investors. Despite this, China's state news agency Xinhua conveyed a less definitive outcome, quoting Xi as saying that Beijing "welcomes negotiations over TikTok."
Trump further mentioned plans to meet Xi at the upcoming Apec Summit in South Korea and expressed intentions to visit China early next year. The US President indicated that Xi would visit the US at a suitable time in the future. While Trump indicated that a formal agreement still needs to be signed, he expressed optimism about the deal's completion and emphasized that the US would maintain "very tight control" over the app.
The proposed deal is expected to involve US firms, including Oracle, which was co-founded by Trump ally Larry Ellison. This arrangement would allow TikTok to continue operations in the US by utilizing algorithm technology licensed from ByteDance. A key issue in the negotiations is the ownership of the algorithm responsible for curating content for TikTok's 170 million American users. Trump, speaking in the UK alongside British Prime Minister Sir Keir Starmer, avoided commenting on whether a new algorithm would need to be developed or if the existing one could be used.
Xinhua reported that China's stance on TikTok remains "very clear," emphasizing its openness to commercial negotiations that adhere to market rules and Chinese regulations. The report also called for the US to provide a fair and non-discriminatory business environment for Chinese companies investing in the US.
ByteDance issued a statement on Friday, expressing its commitment to ensuring TikTok remains accessible to US users and thanking both presidents for their efforts. Some US lawmakers, including members of Trump's party, remain uneasy about the potential deal due to concerns over ByteDance's connections with the Chinese Communist Party.
While Trump previously advocated for banning TikTok during his first term, he now considers the platform a crucial component of his 2024 campaign. The US Supreme Court upheld a law earlier this year requiring ByteDance to divest its US operations, temporarily causing the app to go offline before the ban was postponed.
The US Department of Justice has previously raised concerns about TikTok's data access capabilities, considering it a significant national security threat. This recent call marks the second conversation between Xi and Trump this year, following discussions in June about China's export of rare earth minerals. Despite ongoing talks, several issues, including tech export restrictions and Chinese purchases of US agricultural products, remain unresolved.