Trump and Xi Jinping are preparing to discuss a deal on TikTok. ByteDance must sell control or the service will disappear on September 17.
US, China Close to TikTok Deal
The United States and China have come to a preliminary framework agreement regarding TikTok’s future, according to President Donald Trump and U.S. Treasury Secretary Scott Bessant.
On Monday, Trump teased the agreement on Truth Social, mentioning that both nations had reached an understanding concerning “a certain company that young people are eager to protect.” Bessant later confirmed that discussions were ongoing, emphasizing that China is keen on maintaining TikTok’s cultural aspects.
Deadline September 17
Under current law, TikTok will be shut down in the US if ByteDance does not sell a majority stake in the service to American investors by September 17. The White House has already extended that deadline several times, refusing to fully implement the ban passed by Congress.
Trump initially opposed TikTok, calling it a national security threat because of the risks of Chinese censorship and propaganda. But he has since changed his stance as the app has gained popularity among his supporters.
Potential buyer
Oracle is the closest contender to buy TikTok, with shares rising 3% after the deal was announced. ByteDance, a Chinese company, will be able to retain only 20% in the new ownership structure under the law.
Trade policy and political symbol
TikTok, much like Nvidia, has turned into a political bargaining chip in ongoing negotiations between Washington and Beijing. U.S. President Donald Trump and Chinese President Xi Jinping are anticipated to address the topic during their meeting in Europe on Friday, which will also cover broader trade discussions between the two nations.
