Trump and Xi held their first call since June to discuss the outline of a deal that could transfer control of TikTok’s US operations to a consortium of American investors. Trump remained cautious about commitments, but said a deal was “close” to being done, hinting at opportunities to ease trade tensions and open up room for face-to-face meetings and a possible Boeing aircraft order.
Reports say ByteDance will hold ≤20% stake with the rest held by US investors including Oracle, Andreessen Horowitz and Silver Lake. Experts warn that if core algorithms and technology are still licensed from Chinese entities (not US-owned), it could run afoul of the core divestiture law; Trump has been urged to be prepared to pull the app if conditions are not met. The president has previously extended the legislative deadline via executive order, although the legal basis for that has been questioned.
The conversation took place in the context of a broader tech war: US export controls, China’s moves to limit its reliance on Nvidia, and Nvidia’s lobbying for leniency to continue selling AI chips to China. CEO Jensen Huang has maintained close ties with Trump and pledged massive domestic AI investment, adding to the industry’s bets on the outcome of the call.
On the tariff front, the US-China trade war was in a stalemate until November, with levies once as high as 145% and a 20% tariff remaining as a fentanyl-related pressure. A pending US Supreme Court ruling on tariff powers could change the course of policy. Analysts expect no immediate results, while Trump has urged allies to pressure China and India to force Russia to change course in Ukraine.
