Trump Makes Progress on TikTok Deal and Plans Visit to China Amidst Trade Tensions

In a productive call with Chinese President Xi Jinping on Friday, U.S. President Trump reported progress on various bilateral issues, among them the future of short video platform TikTok. The leaders agreed to meet personally this fall and Trump plans to visit China early next year.

In a social media post following the conversation, Trump stated: “I have just concluded a fruitful discussion with President Xi of China. We made headway on numerous critical matters, including trade, opioids like Fentanyl, ceasing the conflict between Russia and Ukraine, and TikTok’s deal approval.”

China’s official news agency, Xinhua, described the conversation as practical, constructive, and positive. According to Xinhua, Xi expressed that Beijing supports businesses in conducting negotiations according to market rules, provided the outcomes align with Chinese laws and regulations while maintaining a balance of interests.

The state-run agency also expressed China’s hope for a fair, open, and non-discriminatory business environment for its companies operating in the U.S.

Last week’s talks between U.S. Treasury Secretary Steve Mnuchin and Chinese Vice Premier He Lifeng in Madrid resulted in an agreement on a framework for handling TikTok’s ownership. However, no details about a potential deal have been disclosed as of Friday morning, including the participating U.S. companies, ByteDance’s stake in TikTok, or control over its prized algorithm.

With 170 million American users – equivalent to nearly half the population – concerns about data privacy and potential influence on users have arisen among security analysts and policymakers. Last year, Congress passed a law mandating that TikTok shut down in the U.S. unless ByteDance relinquished control. In response, TikTok filed a lawsuit claiming that a ban infringes upon users’ freedom of speech, although the Supreme Court upheld the law in early January.

Just before the ban took effect on January 19th, TikTok temporarily went offline in the U.S., but was restored after Trump issued an executive order deferring enforcement for 75 days and providing liability protection to companies aiding TikTok’s operations or hosting it on app stores. Since then, Trump has granted TikTok four more extensions while working towards a deal that would see ByteDance divest and U.S. firms take control.

The fate of TikTok is intertwined with broader trade negotiations between Washington and Beijing, covering topics like tariffs, microchips, rare earth minerals, and China’s export of chemicals used to produce synthetic opioids such as Fentanyl.

In early 2018, the U.S. and China found themselves in a tariff impasse following President Trump’s announcement of “Liberation Day” tariffs. After several rounds of reciprocal retaliatory levies, U.S. tariffs on Chinese imports reached 145%, and Chinese tariffs on American exports peaked at 125%, threatening to halt all trade.

A truce was announced in May following a meeting in Geneva, with reduced tariff rates and eased other trade barriers, including deliveries of Chinese rare earth minerals. In August, Trump issued an executive order aimed at maintaining low tariffs during negotiations. Currently, the standard U.S. tariff rate on Chinese goods is 30%, while China’s rate on American goods stands at 10%.

In addition to trade matters, recent reports suggest that China and the U.S. are nearing the final stage of negotiations for a state visit by Trump to China after Beijing extended an official invitation earlier this month. If successful, it would mark the first visit by a U.S. president to China since 2017, during Trump’s initial term.

For Xi, such a visit could symbolize international respect and underscore his status as an equal to Trump. It is also expected to help strengthen bilateral relations and improve trade discussions and rhetoric, which Beijing has sought to secure amidst an economic slowdown.