Will TikTok Survive in the US? Trump and Xi Seek Common Ground

Friday is set to be a crucial day for the future of TikTok, with Presidents Xi Jinping of China and Donald Trump of the United States looking for common ground to keep the app accessible in the U.S. market. This task is one of the primary objectives the leaders aim to achieve during their first acknowledged conversation in three months, as conveyed by U.S. officials. However, no official notification regarding the call has been broadcasted from China’s end.

Amid the ongoing negotiations, the American and Chinese administrations have been exploring opportunities for an in-person meeting between Presidents Trump and Xi. They envisage orchestrating this encounter during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, scheduled from October 30 to November 1.

Whether or not TikTok will continue its U.S. operations is pending Beijing’s approval, representing one of many obstacles Trump must tackle in order to maintain the platform’s availability in America. An American legislative ruling had demanded TikTok’s cessation in the U.S. by January 2025 unless ByteDance, the Chinese proprietor of the app, liquidates its American assets.

Despite the legislative ruling, President Trump refrains from implementing the mandate due to multiple reasons, as he explores new ownership possibilities. For one, he is hesitant to provoke the considerable user base of TikTok by banning the app. Furthermore, he is wary of the potential political communication disruptions caused by such a ban.

While the terms of the deal are under discussion, several intricate details necessitating clarity persist. Among the ambiguities are the company’s exact stakeholding structure post-acquisition, the extent of autonomy China will retain, and the probability of Congress endorsing the agreement.

With the deal, it is proposed for the U.S. assets of TikTok to transition ownership from ByteDance to American stakeholders. Those privy to the agreement have disclosed that ByteDance’s algorithm would continue to operate in the U.S. version of TikTok.

The agreement’s decision to continue using ByteDance’s algorithm within TikTok has evoked skepticism among legislators, who are apprehensive about Beijing potentially exploiting the app as a surveillance tool or an instrument of influence over Americans. However, China has emphatically denied the app posing a national security threat and insists that these suspicions are lacking factual evidence.

Trump is widely recognized for his policy approach that emphasizes peace initiation and deal-making in foreign relations. Nevertheless, there remains a palpable tension between the two nations, who are both economic powerhouses.

Among the major points of contention is the technological competition. The U.S. has shown interest in increased Chinese purchases of American products such as Boeing airliners and soybeans harvested in the U.S. Simultaneously, U.S. officials are also urging the Chinese government to take strict measures against the export of chemicals related to fentanyl, a substance implicated in the high figures of overdose deaths in the States.

On the other hand, Beijing reproaches the U.S. for misrepresenting the narcotics issue. Recent figures have indicated a progressive economic slowdown in both China and the United States, inflaming the dispute further.

Returned to power in January, President Trump resorted to a wholesale surge of tariff rates, with particular attention to China’s export-dependent economy. This decision incited China to retaliate similarly. Both countries’ tariff rates swelled to triple digits by April.

May marked the initiation of a series of partial agreements that halted the escalating tariff feud. This period also saw a resolution for problems that prompted China to limit the availability of rare-earth magnets, essential for Washington’s production of advanced electronic devices.

In response to this, Trump had restricted China’s access to resources such as semiconductor design software and jet engines, among other materials. Trump’s economic strategy largely depends on tariffs, a tax on importers that has been raised to its highest rates in the past century.

The Republican president glorifies tariffs as a magical cure capable of reviving vanished manufacturing jobs, reducing perpetual federal deficits, rectifying perceived trade inequalities, and influencing foreign nations to fall in line with Washington’s demands. However, despite the heavy tariffs, China continues to be the U.S.’s third biggest trade partner and the country from which it has the largest goods trade deficit.

While Trump issued threats about slapping tariffs on Chinese exports related to Russia’s oil purchases, he is yet to take any punitive action. Concurrently, concerns escalate in regions over critical affairs such as Taiwan and the South China Sea. These matters often remain under-addressed in Washington due to the seeming gravity of other international relations such as those involving Russia-Ukraine and Gaza.

The call between the Presidents seems to be characterized by an early act of goodwill from China’s side. The Asian nation decided to loosen restrictions and allow the departure of Chenyue Mao, a Wells Fargo banker who was previously barred from returning to the U.S.