The Trump Xi TikTok Deal is once again making global headlines as U.S. President Donald Trump and Chinese President Xi Jinping held their second phone call since Trump’s return to the White House. While both leaders gave contrasting assessments of the talks, the focus on TikTok’s future, trade tensions, and global diplomacy highlights the complex relationship between the world’s two largest economies.
Trump Xi TikTok Deal Gains Momentum
During the call, Trump described the discussion as “very productive,” pointing out progress on several pressing issues including trade, fentanyl, and the Russia-Ukraine conflict. Central to the talks was the Trump Xi TikTok Deal, which aims to shift TikTok’s U.S. operations away from its Chinese parent company ByteDance and into the hands of American investors.
Trump noted that under the upcoming deal, TikTok’s U.S. business would be “owned by all American investors, and very rich people and companies.” Reports suggest that major players like Oracle and investment firms Silver Lake and Andreessen Horowitz could be part of the consortium, with Oracle co-founder Larry Ellison — a vocal Trump supporter — playing a central role.
China’s Response to the Trump Xi TikTok Deal
While Trump expressed optimism, China offered a more cautious response. State broadcaster CCTV emphasized that Beijing’s stance on TikTok remains unchanged: negotiations must follow market rules and comply with Chinese laws. Xi Jinping stressed that China welcomes business talks but warned the U.S. to ensure a “fair, open, and non-discriminatory business environment” for Chinese companies operating in America.
This diplomatic language shows China’s concern that TikTok could be forced into a deal under political pressure rather than purely business logic.
Why the Trump Xi TikTok Deal Matters
The Trump Xi TikTok Deal has significant implications for technology, politics, and global economics. For the U.S., the deal is framed as a national security safeguard. Policymakers argue that China could use TikTok to collect sensitive data from American users or manipulate social media narratives.
For China, TikTok is a symbol of its global digital influence, and losing control of its U.S. operations would be a setback. The deal also impacts global investors, with TikTok valued at over $225 billion according to some recent estimates. Whoever gains ownership of its U.S. operations will control one of the most influential platforms for younger audiences.
Trade Tensions and Broader Diplomacy
Beyond TikTok, the Trump-Xi conversation touched on trade and tariffs. Earlier this year, Washington and Beijing imposed sweeping tariffs on each other’s goods, disrupting supply chains. The U.S. levied 30% duties on Chinese imports, while China retaliated with 10% tariffs on American products.
A temporary truce has since been reached, but it expires in November. The outcome of the Trump Xi TikTok Deal could play into broader negotiations, as both sides weigh economic cooperation against ongoing rivalry.
Trump, Xi, and Political Strategy
For Donald Trump, the TikTok issue is as much political as it is economic. During his 2024 campaign, Trump initially bashed China, accusing it of unfair trade practices and threatening bans on Chinese apps. However, since returning to office, his tone has shifted. He now highlights his “strong relationship” with Xi Jinping, using deals like TikTok to show progress without escalating tensions.
Trump has also openly credited TikTok as a factor that helped him win the 2024 election, acknowledging its influence among younger voters. By striking a balance between national security concerns and keeping the platform accessible, Trump is positioning the Trump Xi TikTok Deal as both a diplomatic achievement and a domestic political win.
What Comes Next for the Trump Xi TikTok Deal?
While no final agreement has been announced, Trump confirmed he would meet Xi Jinping in person at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea. He also revealed plans to travel to China next year, signaling that the TikTok issue is part of a larger framework of U.S.-China engagement.
If finalized, the Trump Xi TikTok Deal could reshape the digital landscape by placing TikTok’s U.S. business under American ownership. However, questions remain:
- Will China approve the deal without losing face?
- How will U.S. investors balance profit motives with national security rules?
- Could other global powers follow the U.S. lead in restricting Chinese apps?
The Trump Xi TikTok Deal is more than just a business negotiation. It represents a clash of politics, technology, and global power. For the U.S., it’s about securing data and reducing Chinese influence. For China, it’s about maintaining sovereignty over one of its most successful tech exports. For Trump, it’s about proving his ability to strike deals that benefit American investors while keeping a popular platform alive for millions of users.
As Trump and Xi prepare for more meetings, the world will be watching closely. The final outcome of the Trump Xi TikTok Deal may well set the tone for the future of U.S.-China relations in technology, trade, and geopolitics.
