President Trump recently announced that discussions will soon commence regarding the sale of TikTok, the popular video-sharing app owned by the Chinese company ByteDance. In statements made to reporters, Trump expressed confidence, stating, “We pretty much have a deal,” and indicated that talks with China, potentially involving President Xi Jinping, might begin as soon as the following Monday or Tuesday. However, the outcome will hinge on obtaining approval from China, since the agreement involves a Chinese-owned company.
The announcement from Trump comes against a backdrop of complex geopolitics, as sources suggest that TikTok is being leveraged as a bargaining chip in the ongoing trade negotiations between the U.S. and China. According to insiders, Beijing is aware that Trump is eager to ensure TikTok continues its operations in the U.S. Consequently, any sale to American investors will be delayed until President Xi feels he has gained the maximum benefit in terms of a favorable trade agreement with the White House.
Last month, Trump extended the deadline for ByteDance to divest its TikTok assets in the United States to September 17, marking the third extension since he took office again in January. Previously, a group of investors was prepared to place a bid to acquire TikTok’s U.S. operations until tensions escalated into a trade war, which included steep tariffs on Chinese imports. Although these tariffs have been reduced as negotiations continue, the path toward a final agreement remains complicated.
When questioned about his confidence in reaching a deal with China, Trump maintained a cautious optimism, acknowledging uncertainty but emphasizing his favorable relationship with President Xi. He articulated a belief that the agreement would be beneficial for both countries, expressing the hope that it aligns with their mutual interests. This delicate balance of negotiations highlights the intricate entwinement of technology issues with broader economic strategies.
Last year, Congress passed a bill with significant bipartisan support, mandating a ban on TikTok if ByteDance did not relinquish its ownership. The Senate voted 79-18, and the House passed the measure by a considerable margin. Subsequently, then-President Joe Biden approved the bill. However, Trump suspended the enforcement of the ban on his first day in office by issuing a 75-day extension, reflecting his contentious stance on the matter.
During his first term, Trump was wary of TikTok, regarding it as a potential tool for Chinese data collection. Yet, his position evolved after major U.S. social media platforms—such as Facebook, Twitter, and YouTube—banned him in response to the events surrounding the Capitol riots on January 6, 2021. This shift reveals the complex and often contradictory nature of U.S.-China relations, especially in the technology sector, where national security concerns intersect with corporate and political interests.
