TLDRs;
- Trump says Xi approved TikTok’s US deal, though Beijing’s response remained cautious and avoided confirmation.
- Algorithm ownership remains unresolved, raising concerns about Chinese influence on US operations.
- ByteDance pledged to follow laws to keep TikTok available but stopped short of confirming a sale.
- US lawmakers warn of security risks if ByteDance’s technology continues powering the platform.
US President Donald Trump said on Friday that his recent phone conversation with Chinese President Xi Jinping paved the way for a potential agreement over TikTok’s operations in the United States.
Trump described the exchange as “productive” and claimed Xi had signaled approval of a deal that would involve US investors taking control of TikTok’s American business.
The app, owned by Beijing-based ByteDance, has been at the center of a high-stakes political and legal dispute since Washington passed a law requiring TikTok to divest its US operations or face a nationwide ban. The deadline, originally set for earlier this year, has already been extended several times, most recently to December.
Leaders Signal Progress but Details Murky
According to Trump, the call not only touched on TikTok but also broader trade issues. He said both sides agreed to meet in person at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this year, and he confirmed plans to visit China in early 2026. Trump also hinted that Xi could travel to the US “at an appropriate time.”
While Trump cast the call as a breakthrough, China’s state media offered a more cautious interpretation. Xinhua, the country’s official news agency, reported that Beijing welcomed negotiations but stopped short of confirming that Xi had endorsed the proposed deal.
The Algorithm Debate
At the heart of the negotiations is TikTok’s powerful recommendation algorithm, which drives engagement among its 170 million American users. Reports suggest a group of US companies, possibly including Oracle, may acquire TikTok’s US business.
However, it remains unclear whether ByteDance would license its algorithm to the new entity or whether a new system would need to be built domestically.
Trump avoided giving a clear answer when pressed on whether the algorithm could remain under ByteDance’s control. He instead emphasized TikTok’s value to American investors, describing the platform as “tremendous” and asserting that the deal would ensure “very tight control” over the app’s operations.
ByteDance and Lawmakers Respond
ByteDance issued a statement following the leaders’ call, noting it would continue to comply with relevant laws to keep TikTok available in the United States. The company expressed gratitude to both Trump and Xi for their efforts but stopped short of confirming that a final sale or licensing agreement had been reached.
Meanwhile, skepticism continues to grow in Washington. Representative John Moolenar, chair of the House Select Committee on the Chinese Communist Party, said he was concerned that any licensing arrangement could leave TikTok dependent on ByteDance’s technology, creating a potential avenue for continued influence by Beijing.
The Department of Justice has also warned of the national security risks tied to foreign access to American user data, labeling the potential threat as one of “immense depth and scale.”
A Political and Economic Flashpoint
TikTok has been a recurring flashpoint in US-China relations, often intertwined with disputes over trade, technology, and national security. While Trump once called for a total ban on the platform, his tone has shifted ahead of the 2024 election cycle, with the former president now viewing the app as a valuable asset for reaching younger voters.
The call between Trump and Xi underscores both the political sensitivity and the global stakes of the negotiations. With deadlines looming and lawmakers divided, the future of TikTok in the US remains uncertain, caught between international diplomacy, business interests, and the complexities of digital security.
