The president Donald Trump stated that “he has approved an agreement” to dissociate TikTok from Chinese ownership following a phone call with Xi Jinping, and he asserted that the understanding is “very advanced” and awaiting signature.
According to reports from CNN, Beijing, however, implied that the deal is not finalized and that any outcome must align with its interests and regulations, according to official statements released after the contact.
Trump explained from the Oval Office that the conversation with Xi lasted almost two hours and that the agreement reached would allow the majority of TikTok's U.S. assets to be sold to U.S. investors, with “very strict control” over the operation in the country. The announcement aims to put an end to years of attempts to separate the app from its parent company ByteDance.
China's position was more cautious: officials and state media spoke of an "agreed framework" this week in Madrid, but suggested that China would retain ownership of the most valuable asset: the recommendation algorithm.
That point raises questions about compatibility with the current U.S. law, which prohibits any cooperation related to the operation of the content algorithm.
In parallel, the statement from Beijing requested Washington to avoid unilateral trade restrictions and to provide an “open, fair, and non-discriminatory” environment for Chinese investors.
The bilateral context continues to be marked by the tariffs that, according to the document, the U.S. initially imposed at 145% on Chinese products and later reduced to 30% since Trump's return to power.
Trump stated he is confident that the agreement would free TikTok from the control of the Chinese government —something that ByteDance has denied exists— and mentioned that the next step would be the signing.
Both leaders plan to meet at the APEC summit in South Korea in October, and the American president added that he would travel to China early next year, while Xi would visit the U.S. at a date to be determined.
Although the signal from Washington indicates an imminent agreement, Beijing conditions the exit on market rules and its own laws and regulations, suggesting that negotiations are ongoing and that the technical details—especially the algorithm—will be the key factor in determining whether the deal meets the demands of both countries.
Frequently asked questions about the agreement between Trump and China regarding TikTok
What is the current status of the agreement between Trump and China regarding TikTok?
The agreement is "very advanced" according to Trump, but Beijing suggests it is not yet finalized. Trump claimed to have approved a deal to separate TikTok from Chinese ownership, while China has been more cautious, suggesting that ownership of the recommendation algorithm could remain under Chinese control, raising questions about its compatibility with U.S. law.
What implications would the agreement have for TikTok in the United States?
The agreement would allow TikTok to continue operating in the United States under U.S. capital control. This aims to put an end to the threats of banning the app in the country, ensuring that most of TikTok's U.S. assets are sold to U.S. investors, while maintaining "very strict control" over its operations in the country.
What role does TikTok's recommendation algorithm play in negotiations?
The recommendation algorithm is a critical point in the negotiations between the U.S. and China. China suggests that it could retain ownership of the algorithm, which raises compatibility issues with U.S. laws that prohibit any cooperation related to the operation of the content algorithm.
How does this agreement affect trade relations between the U.S. and China?
The agreement on TikTok is part of the strained trade relations between the U.S. and China. While the U.S. has reduced tariffs on Chinese products, Beijing has urged Washington to avoid unilateral trade restrictions and provide a fair environment for Chinese investors. Negotiations are ongoing amidst a backdrop of broader tariff and trade tensions.
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