President Donald Trump said on Friday that he and Chinese President Xi Jinping had agreed on a deal for the future of TikTok’s US operations during a phone call. The agreement would reportedly see TikTok’s American business sold to a group of US investors, though Beijing has not yet confirmed the details. Trump described the discussion as “productive” and said he appreciated Xi’s approval of the plan, adding that both leaders would meet at the Apec summit in South Korea later this year. He also confirmed plans to travel to China in early 2026.

China’s state news agency Xinhua gave a less definitive account, reporting that Xi said Beijing “welcomes negotiations over TikTok.” The Chinese government stressed that any deal must comply with Chinese law and balance the interests of both sides. Meanwhile, Trump has repeatedly extended the deadline for ByteDance, TikTok’s parent company, to divest its US operations, with the latest extension pushing the deadline to December. The app, which has 170 million users in the US, had previously faced the threat of being banned entirely.

The deal is expected to involve US companies, including Oracle, taking control of TikTok’s American arm. Oracle, co-founded by Trump ally Larry Ellison, has been a key player in negotiations since the app first came under scrutiny. However, a sticking point remains over the ownership and use of TikTok’s algorithm, which determines how content is recommended to users. Trump sidestepped questions about whether a new algorithm would be built or whether ByteDance’s current system would still be used. He insisted the US would have “very tight control” of the app going forward.

ByteDance issued a statement on Friday saying it would ensure TikTok remained available to American users in compliance with all applicable laws. The company also thanked both Trump and Xi for their efforts in preserving the platform. However, skepticism remains in Washington, with some lawmakers warning that any deal reliant on ByteDance’s algorithm could allow continued influence from the Chinese Communist Party. Michigan Republican John Moolenar voiced strong concerns about national security risks, calling the situation a potential loophole for CCP influence.

The future of TikTok has become increasingly tied to broader US-China relations, which have been strained by disputes over trade, technology, and security. Trump has framed TikTok as an asset of “tremendous value,” saying the investors involved are among the “greatest in the world.” For Trump, the app has also taken on political importance, as he now sees it as a tool for his 2024 campaign despite once calling for its ban. While progress has been made, both sides remain cautious, and the final shape of a TikTok deal may depend on further trade negotiations.

Source: BBC.