TikTok Deal Nears Approval After Trump-Xi Conversation
Washington D.C. – President Donald Trump revealed Saturday that Chinese President Xi Jinping has “approved” the sale of TikTok’s U.S. operations to American investors, though he acknowledged further negotiations are needed to finalize the agreement.
“I just had a talk with President Xi and, as everyone knows, he has approved the TikTok deal,” Trump told reporters at the white House following a conversation with the Chinese leader. “We’re now operating, and we hope to close this deal soon.”
Both the U.S.and China have indicated that additional work remains to iron out the final details of the proposed deal with ByteDance,TikTok’s Beijing-based parent company. The Chinese Ministry of Foreign Affairs issued a statement that did not confirm final approval, but emphasized a desire for fair treatment.
“China’s position on the TikTok issue is clear. The Chinese government respects the needs of relevant companies and is willing to see creative trade negotiations, in accordance with market rules, leading to solutions that are consistent with Chinese laws and regulations and consider the interests of both parties,” the Ministry stated. ”The United States needs to provide an open,fair,and non-discriminatory environment for Chinese investors.”
the conversation between trump and Xi occurred just days after U.S. and Chinese negotiators announced an agreement for ByteDance to sell TikTok’s U.S. business to American buyers. Trump had previously floated the idea of a “special fee” associated with the deal, but details of the fee structure – including the potential government share - remain unclear. He also denied Friday reports that the U.S.would receive a seat on the new business’s board.
The valuation of TikTok’s U.S. operations is estimated to be between $35 billion and $40 billion, though tech valuations are subject to rapid change, particularly with the current boom in artificial intelligence.
To allow more time to finalize the sale, Trump has extended the deadline for ByteDance to divest its U.S. investment for another three months, until December 16th. This marks the fourth extension granted since the President initially raised concerns about the app.
Democratic Representative Richard Blumenthal expressed caution, stating, “Congress should investigate this agreement to ensure that ByteDance, which has its headquarters in Beijing, will not be able to control or influence algorithms, recommend content, or TikTok users’ information.”
Notably, in August, the White house itself began using TikTok, and Trump stated at the time that national security concerns regarding the app had been ”exaggerated.”
