There is no TikTok deal, no matter what Trump says
An update on Donald Trump's pursuit of shiny things, and his call today with Xi Jinping.
We send emails once a week, and if there is breaking news or something we need to say. Our editor is veteran China editor and media entrepreneur Jeremy Goldkorn.
U.S. Treasury Secretary Scott Bessent said after trade talks last weekend in Madrid, Spain that details of a TikTok deal with China “will be confirmed in a Friday call” between Donald Trump and Xi Jinping.
That call happened this morning, September 19 Washington D.C. time. A few hours later, Trump posted to his personal social network that “the call was a very good one, we will be speaking again by phone, appreciate the TikTok approval” (italics mine).
But the Chinese readout of the call shows no such thing. This is all the document says about TikTok:
On the TikTok issue, Xi stated that China’s position was clear: the Chinese government respects the will of the businesses, welcomes them to conduct sound commercial negotiations on the basis of market rules, and in reaching solutions that comply with Chinese laws and regulations and achieve a balance of interests. He expressed hope that the United States would provide an open, fair, and non-discriminatory business environment for Chinese companies investing in the U.S.
…
The U.S. hopes to promote bilateral economic and trade cooperation, and will support the consultations between the two sides to properly resolve the TikTok issue.
There is no deal, there is merely the agreement to be cooperative. There remain a number of hurdles before a deal can be struck. The major ones are listed by Chinese state media worker Fred Gao:
While business negotiations regarding TikTok's ownership can proceed, the emphasis on "market rules" and "balancing interests" signals that Beijing views political pressure forcing ByteDance to sell as unacceptable. The stipulation that any deal must "comply with Chinese laws and regulations" preserves space for government intervention. TikTok's core asset—its recommendation algorithm—falls under the Ministry of Science and Technology's list of technologies restricted for export.