Trump and Xi are predicted to ink a long-awaited agreement regarding TikTok today
Former President Donald Trump and China's leader Xi Jinping are set to finalize a deal on Friday that would sell most of TikTok's US assets to American investors. This agreement, if reached, would conclude a years-long effort that began during Trump's first term and became a key factor in broader negotiations between the United States and China in recent months.
The deal, initially proposed by Oracle, Andreessen Horowitz, and Silver Lake, among others, would see a new consortium take over TikTok's US operations. This consortium would be operated by a majority-US board, including a member appointed by the Trump administration. Chinese investors would own the remaining 20% of the company.
The law that bans TikTok unless it cedes control of at least 80% of its assets to US operators was signed by former President Joe Biden. This bipartisan bill, passed by Congress, went into effect on January 19. However, tariffs on Chinese goods and world news tensions between the two nations initially put the deal negotiations on hold.
Tariffs were brought lower and talks between the US and China resumed, allowing for re-engagement on TikTok discussions. US Treasury Secretary Janet Yellen and Li Chenggang, China's vice minister of commerce, reportedly reached a framework for a TikTok sale agreement during negotiations held in Madrid between diplomats from both countries.
The proposed deal would allow TikTok to remain operational in the United States. This is significant, given that TikTok has around 170 million US users, many of whom are young people who offered significant support to the Republican presidential candidate in the 2024 election.
Trump, who initially advocated for banning TikTok, later viewed it as contributing to his election victory in 2024. However, he has pushed back the enforcement date of the TikTok ban four times. TikTok briefly went dark in the United States on January 18, but Trump announced he would sign an executive action to ensure US companies could host TikTok on their app stores and servers on the same day.
The agreement and conversation is a precursor to a Trump-Xi meeting that both sides have sought for months. The bulk of the deal to sell TikTok's US assets to an American-led investor group was completed by April. The exact details of the deal are yet to be finalized, but it is expected to be announced soon.
In other news, China announced on Monday that Nvidia had violated its antitrust laws. This development could potentially complicate the ongoing trade relations between the two nations. However, the progress made in the TikTok negotiations suggests that both sides are willing to work towards a resolution.
In conclusion, the TikTok sale agreement, if finalized, would mark a significant step forward in US-China relations. It would also ensure the continued operation of a popular social media platform in the United States. The exact details of the agreement are yet to be announced, but both sides have expressed optimism about the deal.
Read also:
- United States tariffs pose a threat to India, necessitating the recruitment of adept negotiators or strategists, similar to those who had influenced Trump's decisions.
- Weekly happenings in the German Federal Parliament (Bundestag)
- Southwest region's most popular posts, accompanied by an inquiry:
- Discussion between Putin and Trump in Alaska could potentially overshadow Ukraine's concerns
