Tech Beetle briefing GB

Trump and Xi Jinping Signal Preliminary Approval of TikTok Deal Amid US-China Trade Talks

Essential brief

Key facts

Donald Trump and Xi Jinping have preliminarily approved a TikTok deal aimed at transferring US operations to American control.

The agreement includes US investors like Oracle acquiring significant stakes to reduce Chinese ownership in TikTok's US business.

The US will control TikTok's algorithm and board, addressing national security concerns related to Chinese influence.

The deal was negotiated amid broader US-China trade talks, with a temporary pause in the trade war and a November 10 deadline for agreement.

The leaders plan further in-person meetings to continue discussions on trade, security, and geopolitical issues.

Highlights

Donald Trump and Xi Jinping have preliminarily approved a TikTok deal aimed at transferring US operations to American control.

The agreement includes US investors like Oracle acquiring significant stakes to reduce Chinese ownership in TikTok's US business.

The US will control TikTok's algorithm and board, addressing national security concerns related to Chinese influence.

The deal was negotiated amid broader US-China trade talks, with a temporary pause in the trade war and a November 10 deadline for agreement.

In a recent development, former US President Donald Trump announced that he and Chinese President Xi Jinping have given preliminary approval to a deal concerning TikTok, the Chinese-owned social media platform facing a potential ban in the United States.

Trump revealed this during a press interaction in the Oval Office, marking the first direct contact between the two leaders since June.

While Trump confirmed Xi's approval, he did not provide specifics about the agreement or its signing timeline.

The announcement follows ongoing negotiations aimed at transferring TikTok's US operations to American control to address national security concerns.

Key US investors, including Oracle, have been in talks to acquire a significant stake in TikTok's US business, thereby reducing Chinese ownership in compliance with legislation passed by Congress last year.

The White House has emphasized that the US will maintain control over TikTok's US operations, including the app's algorithm, which has been a major point of concern given its Chinese origins.

According to White House Press Secretary Karoline Leavitt, the TikTok board controlling US operations will have seven seats, six of which will be held by Americans, ensuring American oversight.

The deal was reportedly negotiated during talks in Madrid between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, coinciding with a temporary pause in the US-China trade war and a November 10 deadline for a broader trade agreement.

The Chinese government described the recent phone call as "pragmatic, positive, and constructive," reiterating its commitment to market-based negotiations and a fair business environment for Chinese companies in the US.

Trump also highlighted progress on other critical issues such as trade, fentanyl control, and the Russia-Ukraine conflict during the call.

The leaders plan to meet in person at the Asia-Pacific Economic Cooperation summit in South Korea later this year, with Trump also indicating a visit to China in early 2026.

This announcement comes amid heightened tensions in the tech sector, including China's recent directive for its top tech firms to halt purchases of Nvidia semiconductors, reflecting the complex dynamics of US-China relations.

Overall, the TikTok deal represents a significant step in addressing US security concerns while potentially easing broader trade tensions between the two economic powers.