Trump And Xi Make Progress In TikTok Deal, Planning To Meet In South Korea

Donadl Trump claims there was an agreement with Xi Jinping regarding TikTok. (photo: x @SputnikMundo)

JAKARTA - US President Donald Trump said he and Chinese President Xi Jinping had made progress on the TikTok deal. The two will meet face-to-face in six weeks in South Korea to discuss trade, illegal drugs, and Russia's war in Ukraine.

The two sides seem to have succeeded in easing tensions in the first phone call in three months between the leaders of these two superpowers. However, it is not clear whether the call resulted in an exact agreement regarding the fate of the popular short video app.

Leaders agreed to continue talks on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum which began on October 31 in Gyeongju, South Korea. Trump also said he would visit China early next year, and Xi would visit the US at an undetermined time.

"He agreed to the TikTok deal," Trump told reporters at the Oval Office. Trump also added that formal deals may still be signed. "TikTok's deal is very close."

Trump also mentioned positive progress on trade issues, fentanyl, and Russia-Ukraine wars during a phone call that lasted about two hours.

"I believe he wants the war to end," Trump said of Xi's view of the Russo-Ukrainian war.

Beijing's final approval of the framework of a deal reached this week is one of the obstacles Trump has to overcome to keep TikTok operating. The US Congress has ordered the app to shut down US users in January 2025 if its US assets are not sold by its owner, ByteDance, a Chinese company.

China's statement did not mention any formal agreement regarding TikTok. Trump has hinted several times this week that an agreement may soon be reached.

"China's position on the issue of TikTok is clear: The Chinese government respects the wishes of the company concerned," the Chinese government said in a statement calling for non-discriminatory treatment of its companies.

"The US will cooperate with China in terms of economy and trade, as well as support their team to reach the right agreement on TikTok through consultation."

The White House and the Chinese government have not provided further responses to requests for comment.

"Beijing is betting on imagery and timing, while Washington is pursuing headlines about TikTok and a summit, hoping for further victory later," said Craig Singleton, senior research fellow at the Foundation for Defense of Democracys. "I think China is very satisfied with the current dynamics."

On Saturday morning, September 20, ByteDance issued a statement expressing gratitude to Trump and Xi "for their attention to TikTok," adding that they would be working to find ways to keep US users in line with China's legal requirements.

In Shanghai, some residents expressed skepticism about the sincerity of the Trump administration in improving relations between the two countries.

"I'm not so sure the US wants a 'even win together' situation," said 22-year-old Lin Jinqi. "It looks like (US) just wants to be a boss. So in many fields, they deliberately create obstacles for China. We're not looking for problems, but we're also not afraid to deal with them either."

National Security Concerns

Trump has refused to enforce TikTok's law while looking for new owners for the app, also for fear of banning apps will anger TikTok's large user base and disrupt political communications.

Key questions about this deal still exist, including the company's ownership structure, to what extent China will continue to control the app's internal mechanisms, what concession Trump will ask for, or whether Congress will approve.

"Everything is being resolved," Trump told reporters, answering the question of whether the US or China will control the app algorithm. "We will have very strict control."

When asked if the US government would have a seat on the board of directors, Trump said, "We will announce it."

He also mentioned the possibility of the US government taking costs to help broker deals so that TikTok remains online, but added that the provision "has not been fully negotiated." The Wall Street Journal reported that the cost could reach billions of dollars.

The deal will transfer TikTok assets in the US from ByteDance to US owners, according to a Reuters report. Sources familiar with the deal said US TikTok would still use the ByteDance algorithm.

This arrangement sparked concerns among lawmakers who thought Beijing could spy on Americans or carry out influence operations through the app. China says there is no evidence of a threat posed by the app.

Trump Tariff Targets China's Export Economy

Since returning to office in January, Trump has sharply increased tariffs and specifically targets China's export-oriented economy at very high rates. This prompted China to retaliate at similar rates. Tariffs on both sides jumped to three-digit percentages in April.

A limited series of deals have stopped the back and forth tariff war between the two countries since May.

Taxes on US importers have become the main pillar of Trump's economic policy. He raised the rate to the highest level in nearly a century while positioning his foreign policy approach as a peace seeker and deal maker.

The Republican politician described tariffs as a way to restore lost manufacturing jobs, reduce chronic federal government deficits, improve trade imbalances, and make other countries submit to Washington's wishes. Many economists consider thorough tariffs as inefficient, increase consumer prices, and limit their choices.

Despite tariffs, China remains the third largest trading partner in the US and the largest bilateral trade deficit source in goods. Recent data show an economic slowdown in China and the US.

Trump has threatened but has so far withheld punitive rates against Chinese exports over the country's purchase of Russian oil.

Meanwhile, regional concerns are increasing over Taiwan and the South China Sea, vulnerable points that are difficult to get attention to as much as the Russian-Ukraine and Gaza wars in Washington.

The statements of the two countries after the phone call did not mention Taiwan.

Other important issues include US demands that China crack down on exports of chemicals related to fentanyl, the cause of death from overdose in the US. Beijing accuses Washington of distorting this issue.