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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Xi hints TikTok deal has his blessing – if Trump makes concessions | |
elsewhere | |
Analysis by Nectar Gan, Simone McCarthy, CNN | |
Updated: | |
2:00 AM EDT, Sat September 20, 2025 | |
Source: CNN | |
Donald Trump’s with Xi Jinping failed to finalize a to spin off | |
TikTok’s US operations, but China’s top leader did signal his | |
blessing for the plan – as long as it aligns with Beijing’s | |
interests. | |
At first glance, Beijing’s willingness to play ball on TikTok looks | |
like a sharp reversal from its years of resistance to relinquishing | |
control over the viral video app – the first global social media hit | |
to come out of China. | |
But rather than bowing to Trump’s pressure campaign, analysts say, | |
Chinese leaders are using an app cherished by the US president and | |
millions of Americans as leverage to extract other, far more | |
consequential concessions. | |
And judging by comments from Chinese officials and state media on the | |
reached by the US and China in Madrid this week, Beijing appears intent | |
on retaining ownership of TikTok’s most prized asset, its algorithm | |
that has helped the app attract 170 million Americans and more than 1.5 | |
billion users worldwide. | |
But it raises questions over how that arrangement would comply with the | |
US law on TikTok, which explicitly precludes any cooperation concerning | |
“the operation of a content recommendation algorithm.” | |
On Friday, Trump that he and Xi had “approved the TikTok deal” | |
following a nearly two-hour call. But Beijing offered little to suggest | |
the deal is finalized, instead signaling it remained very much a work | |
in progress. | |
The Chinese readout quoted Xi as telling Trump that Beijing “would be | |
happy to see productive commercial negotiations in keeping with market | |
rules lead to a solution that complies with China’s laws and | |
regulations and takes into account the interests of both sides.” | |
Xi also asked the US to “refrain from imposing unilateral trade | |
restrictions” and to “provide an open, fair and non-discriminatory | |
environment for Chinese investors,” according to the readout released | |
by China’s Foreign Ministry. | |
It remains unclear what Beijing gained in return for green-lighting | |
negotiations over the sale of TikTok – one of the biggest global | |
success stories of its rising tech industry. The app, owned by Chinese | |
company ByteDance, is not available in China – a heavily censored | |
market where its sister app Douyin dominates. | |
According to the Chinese readout of the Madrid talks, the “basic | |
framework consensus” agreed by both sides on TikTok also covered | |
“reducing investment barriers and advancing relevant economic and | |
trade cooperation.” | |
‘Bigger fishes to fry’ | |
Chinese leaders are well aware of Trump’s desire to keep TikTok | |
running in the US. Since returning to the White House, he has | |
repeatedly extended the deadline to ban the wildly popular app – | |
which he credits with helping him win over young voters in last | |
year’s presidential election – despite being the one who first | |
started the yearslong effort to shut it down during his first term. | |
“Given Trump’s 180-degree turn and now, blatantly political | |
self-interest-fueled interest in owning TikTok, Beijing has most likely | |
deftly leveraged an app that matters much less to its political | |
establishment than it does the MAGA movement core to secure | |
concessions,” said Brian Wong, an assistant professor at the | |
University of Hong Kong. | |
Those concessions could include the US easing semiconductor export | |
controls, investment restrictions – especially with regard to Chinese | |
capital entering the US – and potentially tariffs on China, he added. | |
“In short, the Chinese state has appropriated the TikTok issue as a | |
bargaining chip to secure more advantageous concessions in other policy | |
domains,” Wong said. | |
Beijing’s willingness to cooperate on TikTok showcased its | |
flexibility in dealing with the mercurial Trump and the fluctuating | |
state of bilateral ties, experts say. | |
“Beijing’s earlier comment on a forced sale of TikTok came in the | |
backdrop of a negative perception of US-China relations under Trump | |
2.0,” said Yun Sun, director of the China Program at the Stimson | |
Center think tank in Washington. | |
But that backdrop has changed significantly, she said. | |
“Now Beijing sees the opportunity to improve the relations with US | |
and TikTok suddenly shifted from a ‘matter of principle’ to a | |
matter that is negotiable. There are bigger fishes to fry,” Sun | |
added. | |
Beijing, which once denounced Trump’s first-term bid to force a | |
TikTok sale as “,” is now portraying the latest deal as “mutually | |
beneficial,” stressing that it respects corporate will and market | |
principles. | |
“China reached the relevant consensus with the United States on the | |
TikTok issue because it is based on the principles of mutual respect, | |
peaceful coexistence and win-win cooperation,” the People’s Daily, | |
the ruling Communist Party’s official mouthpiece, said in a | |
Wednesday. | |
China will review the export of TikTok’s tech and intellectual | |
property licensing needed to complete the deal, the commentary added. | |
Sticking point | |
A key sticking point in the deal is the fate of TikTok’s AI-driven | |
recommendation algorithm, the secret sauce at the heart of its global | |
success. | |
Wang Jingtao, a deputy director of China’s Cyberspace Administration, | |
said the deal could include methods such as entrusting the operation of | |
TikTok’s US user data and content security services, as well as | |
licensing its algorithms and intellectual property rights. | |
“The key issue as I understand it from the Beijing side has always | |
been about the algorithm and ByteDance’s IP,” said Trey McArver, | |
co-founder of research firm Trivium China. | |
“For a long time, the red line for the Chinese side has been the | |
algorithm,” he said, adding that selling the technology was seen as | |
unacceptable to Beijing because it would feel like the US was bullying | |
China and seizing its prized asset. | |
In 2020, when Trump first tried to force a TikTok sale, China placed a | |
raft of technologies it deemed sensitive under export controls, | |
including those that enable personalized content recommendations based | |
on data analysis – like TikTok’s powerful algorithm. | |
Cui Fan, an economics professor in Beijing and advisor to the Chinese | |
Commerce Ministry, that TikTok’s technologies are restricted rather | |
than banned for export. The Chinese government will likely conduct | |
reviews and issue a technology export license, which would then allow | |
ByteDance to grant TikTok permission to use them, he in a social media | |
post ahead of the Xi-Trump call. | |
The two leaders by phone in June, when they pulled a fragile tariff | |
truce between their countries . That detente has since been extended to | |
November, as the two sides race to strike a broader deal to resolve | |
their trade differences and long-running disputes. | |
On Friday, Trump said he will meet Xi at the APEC summit in South Korea | |
next month, and that he will visit China early next year. The leaders | |
also agreed that Xi would come to the United States “at the | |
appropriate time,” Trump said. | |
Compared with a summit on the sidelines of a multilateral event, | |
“Beijing obviously would prefer a meeting in China, because they can | |
control everything,” said McArver at Trivium China. | |
“I don’t think they are going to cede things in a negotiation to | |
get there,” he added. “But they may be able to make the visit look | |
more appealing.” | |
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