Will Trump’s New Negotiations with China Resolve the TikTok Ownership Standoff?

President Trump confirmed that formal negotiations with China over TikTok will start early next week, possibly involving President Xi Jinping or senior Chinese officials. This marks the latest chapter in a prolonged standoff, as the U.S. has pushed ByteDance to divest TikTok’s American assets or face a ban.

Trump, speaking from Air Force One, said, “We pretty much have a deal,” but acknowledged that China’s approval is likely necessary for any agreement to move forward.

The current deadline for ByteDance to sell TikTok’s U.S. operations is September 17, following Trump’s third extension since his return to office. The urgency is heightened by bipartisan pressure in Washington over data privacy and national security concerns tied to Chinese ownership.

China’s Role Remains the Key Obstacle

While Trump expressed optimism about reaching a deal, he admitted uncertainty about Beijing’s willingness to approve the transaction. China previously signaled disapproval of a proposed spin-off of TikTok’s U.S. business after the U.S. imposed new tariffs on Chinese goods, stalling progress earlier this year.

Trump said, “I’m not confident, but I think so. President Xi and I have a great relationship, and I think it’s good for them. I think the deal is good for China, and it’s good for us.”

Analysts observe that TikTok has emerged as a strategic tool in the wider trade negotiations between the United States and China. Beijing is expected to leverage its approval for TikTok’s sale to secure favorable terms from Washington, making the outcome of the talks unpredictable.

Did you know?
TikTok’s parent company, ByteDance, was founded in Beijing in 2012 and rapidly grew TikTok into one of the world’s most downloaded apps. The U.S. is its largest market outside China, with over 170 million active users.

What’s at Stake for ByteDance and U.S. Users

TikTok, with over 170 million American users, continues to operate under temporary legal extensions granted by Trump, despite a law mandating divestment or a ban. ByteDance faces mounting pressure to reach a deal that satisfies both U.S. lawmakers and Chinese regulators.

The plan would create a new U.S.-owned entity to manage TikTok’s American operations, but any final agreement must navigate complex regulatory and political hurdles on both sides.

TikTok has publicly expressed appreciation for the administration’s approach and signaled willingness to work toward a resolution, but the company’s future in the U.S. remains uncertain as negotiations resume.

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Political and Economic Implications of a TikTok Deal

The standoff over TikTok is emblematic of the broader U.S.-China technology and trade rivalry. Lawmakers in Washington have cited national security risks and the need to protect user data as reasons for forcing ByteDance to divest. For China, the outcome will test its resolve to protect domestic tech champions and influence over cross-border data flows.

A successful deal could ease tensions and set a precedent for future tech negotiations. Failure, however, might lead to a ban, disrupting millions of users and further straining bilateral relations.

Uncertainty Remains as Negotiations Begin

Despite Trump’s optimism, significant uncertainty surrounds the talks. The deal’s approval hinges on China’s willingness to negotiate, the U.S. administration’s flexibility, and the ability of all parties to overcome political and regulatory obstacles.

As the September 17 deadline approaches, the future of TikTok in the U.S. remains unresolved, with both sides weighing the broader implications for technology, trade, and diplomacy.