Trump seeks to discuss trade matters and resolve the TikTok dispute during a phone conversation with Xi
US President Donald Trump and Chinese President Xi Jinping held a phone call on Friday, as the two superpowers seek to find a compromise on tariffs. The call, which focused on TikTok and trade talks, comes after both sides dramatically increased tariffs against each other earlier this year, disrupting global supply chains.
According to reports, Washington and Beijing have reached a deal to reduce levies, which expires in November. Under this deal, the US imposed 30 percent duties on imports of Chinese goods, while China hit US products with a 10 percent tariff. However, the details of the agreement remain unclear.
Trump stated that they are close to deals on both TikTok and trade. The TikTok drama may be settled in the call, as Trump has put off a ban to force Chinese parent company ByteDance to sell its US operations for national security reasons. The Wall Street Journal suggests a potential consortium to control TikTok that includes tech giant Oracle, Silver Lake, and Andreessen Horowitz.
If a deal with the Chinese government is reached, the American investors prepared to take over TikTok's US operations are a consortium including Oracle, Silver Lake, and Andreessen Horowitz. Together, they are set to acquire around 80% of TikTok USA, with ByteDance retaining about 20%. These investors are described as being friendly to former President Trump and would have majority control over the US subsidiary.
International Crisis Group US-China relations expert Ali Wyne stated that each leader will aim to signal that they have outmaneuvered the other in trade talks focused on tariffs. Trump also mentioned that his relationship with China is good, and he believes TikTok boosted his appeal to younger voters and helped him win last year's election.
As of press time last night, Trump and Xi were still in talks. The outcome of these negotiations could have significant implications for both countries and the global economy.
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