Trump, Xi Discuss TikTok Deal as US and China Seek Middle Ground
US President Donald Trump announced on Friday that he and Chinese President Xi Jinping had reached an understanding on the future of TikTok’s US operations during a phone call. However, Beijing has yet to confirm any final agreement.
Posting on Truth Social, Trump described the conversation as “productive” and said he “appreciated” Xi’s support for a deal that could see TikTok’s American operations sold to a group of US investors. The arrangement is expected to give Washington stronger oversight of the app, which currently has more than 170 million users in the United States.
China’s state-run Xinhua news agency painted a less definitive picture of the talks, quoting Xi as saying that Beijing “welcomes negotiations over TikTok” but stopping short of confirming a signed agreement.
TikTok’s parent company, ByteDance, has long faced pressure from Washington to sell its US arm or risk being banned altogether. Trump initially set a January deadline for divestment, but has postponed enforcement four times, with the latest extension pushing the deadline to December.
Speaking to reporters, Trump confirmed that “a deal still has to be signed” but signaled optimism that an agreement would soon be finalized. “We look forward to getting that deal closed,” he said, adding that the US would maintain “very tight control” of the platform.
Reports suggest that Oracle — co-founded by Trump ally Larry Ellison — could be among the US investors leading the acquisition. A major sticking point remains ownership of TikTok’s powerful algorithm, which determines the content shown to users. It’s unclear whether the new owners would build a fresh algorithm or continue licensing ByteDance’s technology.
Trump praised the app’s potential, calling TikTok “tremendously valuable” to the US and describing the investors involved as “some of the greatest in the world.”
For its part, ByteDance issued a cautious statement, saying it would comply with all relevant laws to ensure TikTok remains accessible in the US, while thanking both Trump and Xi for their efforts.
Meanwhile, lawmakers from both parties remain skeptical. Representative John Moolenar, chair of the House Select Committee on the Chinese Communist Party, voiced concerns that any licensing arrangement could leave TikTok vulnerable to continued influence from Beijing.
TikTok has become a political flashpoint in Washington. While Trump once pushed to ban the app outright, he has since embraced it as a powerful tool in his 2024 re-election campaign. The Supreme Court upheld legislation earlier this year requiring ByteDance to divest its US operations, and the platform briefly went offline before Trump granted a delay.
The debate over TikTok comes amid broader tensions between Washington and Beijing. While both nations have avoided the steepest tariffs and export restrictions in recent months, disputes remain over technology transfers, agricultural purchases, and security risks tied to Chinese investments.
Friday’s call marked the second direct conversation between Trump and Xi this year. In June, the two leaders discussed rare earth mineral exports, with China agreeing to grant limited permits for US companies. Trump also confirmed plans to meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this year, with both leaders expected to make reciprocal visits in 2025.
As negotiations continue, TikTok’s fate remains uncertain, balancing high-stakes politics, global trade disputes, and the interests of millions of American users.