U.S. President Trump and Chinese leader Xi aim for a decisive TikTok victory to shatter the deadlock between their countries
In the ongoing saga of US-China relations, a potential deal is being discussed that could keep the popular video-sharing app TikTok operational in the United States. President Donald Trump has positioned his foreign policy approach as one of peace-seeking and deal-making, and this seems to be the case with TikTok. The US assets of the app are planned to be majority-owned by American investors, primarily the software giant Oracle, supported by Larry Ellison, alongside financial investors Silver Lake and Andreessen Horowitz. Bytedance, the Chinese company that owns TikTok, will retain about 20% ownership in the US subsidiary. This new ownership structure involves Oracle as the guardian of data privacy, with Silver Lake and Andreessen Horowitz also holding significant stakes, while Bytedance keeps a minority share. The deal would still allow US TikTok to make use of ByteDance's algorithm. However, Trump has expressed concerns about potential spying and influence operations through the app. He has threatened but so far withheld punitive tariffs against Chinese exports related to the country's purchases of Russian oil, indicating a complex web of geopolitical considerations at play. The US is demanding that China crack down on the export of fentanyl-related chemicals, a concern that has been met with accusations of distortion from Beijing. Regional worries are multiplying over Taiwan and the South China Sea, adding to the tension. In an early sign of goodwill prior to the call, China permitted the departure of Wells Fargo banker Chenyue Mao, who had been prevented from returning to the United States for several months. Liu Pengyu, spokesperson for the Chinese embassy in Washington, stated that heads-of-state diplomacy plays an irreplaceable role in providing strategic guidance for China-US relations. Congress has ordered TikTok to be shut down for American users by January 2025 if its US assets aren't sold by Chinese owner ByteDance. Trump has expressed concerns about the deal, particularly regarding the precise ownership structure, how much control China will retain, and whether Congress will approve. Despite these challenges, Trump has suggested that relations between the US and China may do an extension based on the same terms that they have right now, which are 'pretty good terms'. Recent data point to slowing economies in both China and the United States, suggesting a need for cooperation rather than conflict. As the deal progresses, it remains to be seen how it will impact the complex and evolving relationship between the world's two largest economies.
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