A TikTok deal could be the first step towards resolving the US-China trade tensions
The US-China trade talks in Spain have yielded a “framework” for a deal on TikTok, said Treasury Secretary Scott Bessent yesterday. He indicated the app could move to American business-controlled ownership.
President Donald Trump and Chinese counterpart Xi Jinping are set for a phone call on Friday to discuss more. While not mentioning TikTok directly, Trump posted online saying a deal was reached “on a ‘certain’ company that young people in our Country very much wanted to save.”
The news comes just as Trump’s fourth extension on TikTok’s divest or sell US deadline expires on September 17. He had previously hinted that Oracle’s Larry Ellison could acquire the platform.
A TikTok deal could be the first step towards resolving the US-China trade tensions, fueled by Trump’s tariffs. America has restricted Chinese chipmakers while China has limited rare earth
While Trump has paused steep tariffs on China, it is set to expire in November.
More negotiations could continue between the countries, with a potential Trump and Xi meeting at the Asia-Pacific Economic Cooperation forum in South Korea next month.