The political saga around TikTok has taken a new turn. US President Donald Trump has announced that he has reached a deal with Chinese Premier Xi Jinping regarding the future of the TikTok’s US operations, a move that could end months of uncertainty and a potential ban.
The deal, which Trump announced after a phone call with Xi, would reportedly allow a consortium of US investors to take over TikTok’s US business. The consortium would include names as important as Oracle. This arrangement would allow TikTok to continue operating in the United States. American investors would license the algorithm of ByteDance, TikTok’s Chinese parent company. The latest development comes after both leaders set a framework for the deal this week.
The US and China reached a deal for TikTok after new call
This is a significant change in course for Trump. During his first term, he was in favor of banning TikTok in the US. The ban was a result of national security concerns over ByteDance’s ties to the Chinese government. There were concerns about the Chinese government accessing the data of millions of American users. A law was passed requiring ByteDance to sell or shut down its US operations. However, Trump has repeatedly extended the deadline to allow for a deal to be brokered.
The announcement of the agreement has been met with mixed reactions. On one hand, China’s state news agency, Xinhua, reported that the country welcomes the commercial negotiation and hopes the US will provide a fair business environment for Chinese companies. On the other hand, some US lawmakers, including those within Trump’s own party, have expressed unease. They are concerned that a licensing deal still leaves a door open for the Chinese government to have influence over the app through its algorithm.
New meeting set for October to discuss further issues
The call between the two leaders also touched on other topics. The list includes trade and China’s export of rare earth minerals. Both leaders are set to meet in person at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea at the end of October. That date could be a before and after in the commercial relations of both powers.
The details of the TikTok deal are still scarce. However, the latest developments signal a potential resolution to a long-running tech and political standoff. Hopefully more details will emerge in the coming few days or weeks.
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