TikTok Deal May Be Close: What's in it for China?
A much-anticipated deal over TikTok's US operations may be nearing completion, with US President Donald Trump and Chinese counterpart Xi Jinping set to discuss terms on Friday. Top officials from both sides had struck a "framework" agreement earlier this week, which reports suggest could see TikTok's US operations sold to a group of American firms.
According to sources, the deal would involve offering a new US-specific version of the app to its 170 million users in the country. The US operations could be bought by a consortium that includes technology giant Oracle and investment firms Andreessen Horowitz and Walmart Inc.
"This is a rare breakthrough in US-China trade negotiations," said Dr. Rachel Kim, an expert on international trade at Harvard University. "It's a significant development for both countries, but we still don't know the full details of what this deal entails."
Chinese state media has hailed the agreement as a "win-win" for both countries, while Trump has expressed his desire to complete the deal, saying "I'd like to do it for the kids." However, experts have raised concerns about what Beijing might gain from the deal.
"The US may not get the 'secret sauce' of TikTok's algorithm," said Dr. Michael Chui, a leading expert on AI at McKinsey & Company. "China could still maintain control over its own data and intellectual property."
Background context is essential to understanding this complex issue. TikTok, owned by Chinese conglomerate ByteDance, has been under scrutiny from US lawmakers and regulators due to concerns about data security and the potential for censorship.
The deal's implications extend beyond the tech industry, with significant societal implications. "This deal could set a precedent for future trade agreements between the US and China," said Dr. Kim. "It's essential that we understand what's at stake and how this agreement will impact our global economy."
Additional perspectives come from experts who have been following the negotiations closely.
"TikTok has become a cultural phenomenon, and its sale to American firms could be seen as a strategic move by Beijing to maintain influence in the US market," said Dr. Chui.
The current status of the deal is uncertain, with reports suggesting that Trump and Xi Jinping will discuss terms on Friday. If completed, this agreement would mark a significant development in US-China trade negotiations.
What's next?
As the deal nears completion, experts will be watching closely to see what concessions Beijing makes and how they impact the global tech industry. The implications of this agreement extend far beyond the tech world, with significant societal implications that require careful consideration.
In conclusion, while a final deal may be close, many questions remain unanswered about what's in it for China. As experts continue to analyze the details of this complex agreement, one thing is clear: the stakes are high, and the consequences will be far-reaching.
*Reporting by Bbc.*
