Trump and China’s Xi Discuss TikTok & Trade in a Phone Call/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump and Chinese leader Xi Jinping began talks Friday to finalize a deal allowing TikTok to continue operating in the U.S. The conversation also touched on broader trade issues and future summit possibilities. Both sides appear optimistic, but key disputes remain unresolved.
Trump and Xi Talk to Finalize TikTok Deal – Quick Looks
- Trump and Xi spoke Friday morning to discuss TikTok and trade.
- TikTok’s future hinges on a U.S.-China agreement over ownership and data handling.
- Trump seeks to ensure TikTok complies with U.S. national security laws.
- Chinese officials signaled agreement on algorithm use and data protections.
- A leadership summit may depend on finalizing the TikTok deal.
- Ongoing trade tensions include tariffs, rare earth exports, and fentanyl ingredients.
- U.S. farm exports to China have sharply declined due to trade disputes.
- Trump administration maintains pressure with 20% tariffs on key Chinese goods.
- Friday’s call is the second direct conversation between Trump and Xi since Trump’s return to office.
- No resolution yet on tech restrictions, agricultural trade, or fentanyl precursors.
Deep Look: Trump and Xi Open Talks to Finalize TikTok Deal
WASHINGTON — U.S. President Donald Trump and Chinese President Xi Jinping held a critical phone call Friday morning, aimed at sealing a long-debated deal that would allow TikTok to continue operating in the United States under new ownership terms. The discussion, which began around 8 a.m. Eastern Time, represents a pivotal step in ongoing U.S.-China negotiations over trade and technology, as well as the future of diplomatic relations between the two global powers.
The phone call, confirmed by both a White House official and China’s Xinhua News Agency, follows months of escalating trade tensions, persistent questions about data privacy, and rising concerns over Chinese influence in U.S. digital infrastructure.
TikTok Deal Nears the Finish Line
TikTok, the massively popular short-video platform, has faced repeated threats of a U.S. ban unless its Chinese parent company, ByteDance, divests its controlling stake. Trump has extended several deadlines to allow for negotiations, and earlier this week, U.S. Treasury Secretary Scott Bessent stated that both sides had reached a framework agreement, leaving final approval to Trump and Xi.
“TikTok has tremendous value,” Trump said Thursday. “And the U.S. holds that value in its hands because we’re the ones who have to approve it.”
Under a law passed last year to address national security concerns, ByteDance must relinquish majority ownership, and U.S. user data must be handled by an American partner. Beijing has reportedly agreed to authorize U.S. oversight of TikTok’s algorithm and intellectual property, a significant sticking point in prior talks.
According to Chinese officials, the framework includes a third-party entity to manage U.S. user data and protect content security—measures meant to ease bipartisan concerns in Washington over China’s access to personal data and influence over digital content.
Rep. Raja Krishnamoorthi, a leading Democrat on the House Select Committee on the Chinese Communist Party, stressed, “TikTok’s algorithm and data must be truly in American hands.”
A Broader Trade and Tech Agenda
While TikTok was the headline issue, Friday’s call carried broader significance. It marked the second direct conversation between Trump and Xi since Trump’s return to office, and it could lay the groundwork for a potential face-to-face summit aimed at resolving wider U.S.-China economic disputes.
Their last conversation in June aimed to de-escalate tensions after China restricted exports of rare earth elements, essential materials in the production of smartphones, batteries, and military technologies. At the time, Trump re-imposed sweeping tariffs, sparking fears of a renewed trade war.
“I’m speaking with President Xi on Friday, having to do with TikTok and also trade,” Trump confirmed Thursday. “We’re very close to deals on all of it.”
Despite the optimistic tone, significant disagreements remain. The U.S. continues to impose 20% tariffs on certain Chinese imports, citing Beijing’s failure to stop the export of chemical precursors used in fentanyl production. Meanwhile, China has halted purchases of key American agricultural products, including soybeans and sorghum—moves that have hurt U.S. farmers.
From January through July, U.S. farm exports to China plummeted by 53% compared to the same period last year. Sorghum exports fell by a staggering 97%. Josh Gackle, chairman of the American Soybean Association, expressed growing frustration among farmers:
“There’s still time, and it’s encouraging that the two countries continue to talk, but people on the ground are getting anxious.”
Competing Strategic Narratives
Experts say both Trump and Xi are seeking to shape the narrative around these high-stakes talks. Trump is likely to frame the discussions as proof of U.S. leverage over China, particularly in tech and trade. Xi, by contrast, may use the talks to highlight China’s economic resilience and press for the removal of sanctions and trade barriers.
Ali Wyne, senior adviser on U.S.-China issues at the International Crisis Group, explained, “Trump will likely seek to make it appear that the United States has the upper hand in trade negotiations. Xi will underscore China’s economic leverage and warn that continued progress will hinge on easing U.S. tariffs and sanctions.”
No new agreements have been reached on broader issues like tech export restrictions, U.S. sales of agricultural products, or China’s role in the opioid crisis. However, the very fact that dialogue is ongoing may be a positive signal for markets and diplomatic observers.
Looking Ahead
The TikTok agreement is widely seen as a litmus test for whether broader cooperation between the U.S. and China is possible in Trump’s second term. The White House hopes to announce a finalized deal within days, potentially paving the way for a full leadership summit between Trump and Xi.
Still, any such breakthrough will depend on whether the two leaders can bridge the ideological and geopolitical divides that have widened over recent years. In the meantime, American companies, global investors, and national security experts are watching closely.
The Trump administration said Monday that a deal has been reached with China to keep TikTok operational in the US, concluding a yearslong effort that began during President Donald Trump’s first term.
On security:
“We were very focused on TikTok and making sure that it was a deal that is fair for the Chinese and completely respects US national security concerns, and that’s the deal we reached,” US Trade Representative Jamieson Greer said.
On trade: The deal includes “resolving TikTok-related issues through cooperation, reducing investment barriers, and promoting relevant economic and trade cooperation,” said Li Chenggang, China’s top trade negotiator.
And here’s what is still unclear:
The buyer: Several investment groups were interested in buying TikTok. The Trump administration has not named the US-backed buyer, but the group is widely expected to be led by Oracle executive chairman Larry Ellison.
The data and the algorithm: China’s Cyberspace Administration said the deal could include methods such as the entrusted operation of TikTok’s US user data and the licensing of algorithms and intellectual property rights.
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