Trump and Xi Edge Closer to TikTok Deal; Face-to-Face Talks Slated at APEC
WASHINGTON / BEIJING — U.S. President Donald Trump has announced that Chinese President Xi Jinping has given his approval to a proposed deal concerning TikTok’s U.S. operations, stepping closer to resolving a growing dispute over the popular video-sharing app’s ownership and control.
Key Points from the Announcement
- Trump told reporters in the Oval Office that Xi has “approved the TikTok deal,” and described the remaining steps in the transaction as possibly “just formalities” before completion.
- Despite Trump’s confidence, Chinese authorities have been more cautious: Beijing has not issued a matching statement confirming a finalized agreement. Chinese official communiqués emphasise that any deal must comply with China’s laws and regulations, particularly those affecting export controls on algorithms or technology.
Background: Why the Deal Matters
The push to restructure TikTok’s U.S. operations stems from rising concerns in Washington about national security, data privacy, and foreign adversary control. Congress has passed legislation requiring ByteDance, TikTok’s Chinese parent company, to divest or face a ban on the app’s U.S. operations.
Delay tactics and extensions have been part of the negotiations: The deadline for divestment had previously been set for January 2025, but was extended multiple times — most recently to December 16, 2025 — in order to allow more time for discussions and agreement-building.
Where Things Stand
- The two leaders have already agreed to meet in person during the Asia-Pacific Economic Cooperation (APEC) forum, set for late October in Gyeongju, South Korea
- Key unresolved issues remain, such as who will own and control the TikTok algorithm, where U.S. user data will be stored, and how much oversight Chinese entities will retain under the final arrangement.
Expert Reactions
Analysts are cautious, noting that Trump’s assertion of Xi’s approval might overstate Beijing’s readiness. Some experts believe that while China may have signalled tentative support for a framework, final agreement depends on detailed legal, regulatory, and technological arrangements.
Beijing has reiterated that any transfer of technology or intellectual property must follow Chinese export rules, and that market principles and legal compliance are essential.
What’s Next
- Both governments will use the upcoming APEC summit as an opportunity for follow-up negotiations, especially on matters like trade, bilateral tensions, and technology transfers.
- The U.S. Congress continus to watch closely; any deal will likely need to satisfy legal requirements under U.S. law, including provisions related to foreign adversary-controlled applications.
- For ByteDance, Oracle, Silver Lake, and other investors reportedly involved, speed and clarity are essential if they are to assume ownership or control of U.S. TikTok operations in a way acceptable to both U.S. and Chinese authorities.
