What's happened
The US and China are nearing an agreement on TikTok, with US investors set to control around 80% of the app in the US. The deal follows negotiations involving trade, security, and market access, with both sides emphasizing mutual respect and legal compliance. The deal is not yet finalized and awaits Chinese approval.
What's behind the headline?
The TikTok deal exemplifies the complex interplay between economic interests and national security in US-China relations. The proposed US-controlled ownership structure, with around 80% control by American investors including Oracle and Silver Lake, aims to address security concerns while maintaining the platform's global interoperability. However, the involvement of politically connected investors like Larry Ellison and Rupert Murdoch raises questions about potential influence over content and policy. The deal also signals China's strategic use of economic negotiations to secure broader trade and geopolitical gains, such as easing export controls and increasing Chinese investment abroad. The Chinese government’s emphasis on mutual respect and legal compliance underscores its desire to protect its companies’ interests while engaging in reciprocal treatment. The ongoing negotiations highlight the delicate balance both nations seek between economic openness and security, with the potential to set a precedent for future cross-border investments and tech regulation. The outcome will likely influence the broader US-China trade relationship and the future of Chinese tech firms operating globally, especially in sensitive sectors like AI and semiconductors.
What the papers say
The South China Morning Post reports that the deal follows a framework agreement and a 'go-ahead' from Xi Jinping, emphasizing China's strategic use of the TikTok negotiations to leverage broader trade and political issues. The article highlights China's insistence on mutual respect and legal compliance, framing the deal as a model for future bilateral relations. Meanwhile, the Associated Press notes that the deal is still pending Chinese approval and that the US aims to protect American data privacy while maintaining TikTok's global interoperability. The AP also emphasizes the political implications, with Trump’s administration seeking to control the platform's algorithm and content, potentially aligning it with US political interests. Both sources agree that the deal is a significant step but remains uncertain until formal approval from China, with broader implications for US-China economic and diplomatic relations.
How we got here
The controversy over TikTok's US operations stems from concerns over data security and national security, leading the US to consider banning the app unless ByteDance sells its US assets. Negotiations have been ongoing, with recent high-level talks between Xi Jinping and Donald Trump signaling potential progress. The US aims to ensure American control over the platform's algorithm and data, while China seeks fair treatment for its companies abroad and to leverage the deal in broader trade negotiations.
Go deeper
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
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TikTok/Douyin is a Chinese video-sharing social networking service owned by ByteDance, a Beijing-based Internet technology company founded in 2012 by Zhang Yiming.
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