Trump and Xi Discuss TikTok’s Fate and Trade Relations in Call

US President Donald Trump and Chinese President Xi Jinping engaged in a phone call focused on the future of TikTok in the United States and ongoing trade tensions. This conversation, the first since June, reflects the leaders’ intent to finalize a deal to ensure TikTok’s continued operation in the US while addressing the complexities of their protracted trade war.

Both leaders are examining a potential trade agreement and negotiations surrounding the Chinese-owned short-video app, which is facing a ban unless its parent company, ByteDance, divests its American assets. Ahead of the call, Trump stated on Fox News that they were “very close to deals on all of it,” emphasizing that his relationship with China was “very good” and suggesting that “it sounds like they’ve approved TikTok.”

Deadline for TikTok Sale Approaches

TikTok, which boasts around 170 million users in the US, has until December 16, 2023, to secure a sale agreement, marking the fourth extension of the deadline by Trump. This extension follows legislation enacted by the US Congress, mandating that the app be transferred to US ownership due to concerns about national security linked to Chinese data-sharing policies.

In a recent statement, Scott Bessent, US Treasury Secretary, indicated that Washington and Beijing had established a “framework” agreement regarding TikTok, though specific details about potential buyers or the control of the app’s algorithm were not disclosed. Meanwhile, China’s Commerce Ministry confirmed reaching a “basic framework consensus” but reiterated its opposition to the politicization of technology and trade issues.

Ongoing Trade Tensions

The call also aimed to address the simmering trade friction between Washington and Beijing, which escalated earlier this year when tariffs soared to as high as 145%, creating a de facto trade embargo. Recently, both nations have taken steps to de-escalate these tensions; the US has capped tariffs on Chinese goods at 30%, while China has imposed an additional 10% tariff on American products. These tariffs are set to expire on November 10, 2023, unless a new agreement or truce extension is reached.

The ongoing negotiations reflect the complex nature of US-China relations, with both economic interests and national security concerns at the forefront. As the deadline for TikTok approaches, the world watches closely to see how these discussions will unfold and what implications they may have for international trade and technology policies.