Xi signals Approval of Potential TikTok Deal Amidst Ongoing US-China trade Talks
Brussels – Chinese President Xi Jinping has indicated support for a potential restructuring of TikTok that would see ownership of the popular social media app shift away from its Chinese parent company, ByteDance. The signal comes as the US and China continue high-stakes trade negotiations aimed at de-escalating tensions that have rattled global markets for years.
During a recent phone call, Xi reiterated China’s commitment to allowing commercial negotiations to proceed based on market principles, provided they adhere to Chinese laws and regulations and achieve a balance of interests. He also called on the US to foster a “open, fair, and non-discriminatory” investment surroundings for Chinese companies operating within its borders.
The future of tiktok in the US has been uncertain since last year, when a US law was passed mandating ByteDance to divest its US operations or face a nationwide ban, citing national security concerns. Reports in The Wall Street Journal suggest discussions are underway for a deal that would establish a new, US-based entity to run TikTok, with ByteDance’s ownership reduced to under 20%. The remaining 80% would be held by a combination of new investors and existing backers.
While Xi’s apparent endorsement of this potential TikTok solution is a positive sign, critically important hurdles remain in the broader US-China trade relationship. Four rounds of talks held in Europe between May and September have addressed a complex web of issues, with limited breakthroughs.
Key areas of contention include US pressure on China to intensify efforts to curb the export of chemicals used in the production of fentanyl,and a demand for increased Chinese purchases of US goods,particularly agricultural products like soybeans,to address the trade imbalance favored by the US.
Competition over advanced technologies, specifically semiconductors and AI chips, is also a major sticking point. A recent lifting of export bans on Nvidia‘s H20 chip by the Trump management was quickly followed by a Chinese anti-monopoly inquiry into the US chip giant, highlighting the fragility of the situation.
The current negotiations are taking place under a temporary truce, with 90-day extensions to existing tariffs and a pause on certain export controls. This arrangement was established after the Trump administration imposed tariffs of up to 145% on Chinese imports, triggering retaliatory measures from Beijing, including export restrictions on rare earth minerals crucial for high-tech manufacturing. Washington responded with its own restrictions on access to chip design software, jet engine parts, and student visas.
Both sides agreed to de-escalate in May, reducing tariffs to 30% (US) and 10% (China) as a gesture of goodwill during negotiations. The next deadline for this 90-day extension is fast approaching in November, adding urgency to the ongoing discussions.
Keywords: US-china Trade, Xi Jinping, TikTok, ByteDance, Trade Negotiations, Fentanyl, Semiconductors, Tariffs, Trade War, Nvidia, Investment, Divestiture, National Security.
