Trump Touts TikTok Deal, But China Remains Silent
▼ Summary
– President Trump announced a potential deal to prevent TikTok’s US ban following a call with President Xi, though details remain unclear.
– China’s official statement emphasized respecting the company’s wishes and supporting a market-based solution compliant with Chinese laws.
– The proposed deal involves US investors taking an 80% stake in TikTok’s US operations, with Oracle handling data storage and licensed technology from ByteDance.
– Key unresolved issues include control over data and algorithms, with further details possibly emerging after a planned meeting at the APEC Summit.
– The US TikTok ban threat originated under Trump in 2020 and was formalized by the 2024 PAFACA Act, requiring divestment by January 2025.
President Trump has publicly declared a breakthrough in the TikTok saga, announcing that a deal has been reached to prevent the app’s ban in the United States following a phone conversation with Chinese President Xi Jinping. The specifics of the arrangement, however, remain shrouded in uncertainty, with no official confirmation from Beijing regarding its acceptance of the proposed terms.
In a post on Truth Social, Trump characterized the discussion as “very good” and indicated plans for further dialogue, along with a potential face-to-face meeting at the upcoming APEC summit. He specifically mentioned appreciating “the TikTok approval,” suggesting a mutual understanding had been reached. Yet China’s official readout of the call, published by its Foreign Ministry, offered a more measured response, emphasizing respect for corporate decisions and the importance of lawful, market-based negotiations that protect the interests of both nations.
Reports indicate that the proposed framework involves a consortium of U.S. investors, including Oracle, Silver Lake, and Andreessen Horowitz, acquiring an 80 percent stake in TikTok’s U.S. operations. Oracle, which already manages U.S. user data domestically, would continue in that role. The new entity would operate under American control while licensing technology from ByteDance, TikTok’s Chinese parent company, to maintain a comparable content algorithm.
A White House spokesperson cautioned that any unconfirmed details should be regarded as speculative until officially released by the administration. Critical questions persist, particularly concerning the degree of influence Oracle and ByteDance would respectively hold over data management and algorithmic operations. Trump hinted that more clarity may come after another anticipated discussion with Xi at the APEC Summit in late October.
During a recent press conference with UK Prime Minister Keir Starmer, Trump asserted that the U.S. deserved a “tremendous fee plus” for facilitating the agreement, though he provided no elaboration on what that compensation might entail. White House officials did not respond to inquiries seeking clarification on this point.
The administration also highlighted the involvement of Vice President JD Vance, whose advisor Sean Cooksey was described as being “at the forefront” of negotiations. This development marks a significant turn in a long-running dispute that began during Trump’s first term, when he initially threatened to ban TikTok and WeChat. Although the Biden administration revoked those executive orders, scrutiny continued, culminating in the passage of the PAFACA Act in April 2024. That legislation gave TikTok until January 2025 to sever its Chinese ownership ties or face a federal ban.
(Source: Wired)
