TikTok Deal Nears Completion as US, China Officials Discuss Terms
A long-awaited deal over TikTok's operations in the United States may be close to being finalized, with top officials from both sides set to discuss terms on Friday. According to reports, a "framework" agreement has been struck, which could see TikTok's US operations sold to a group of American firms.
The proposed deal would be a significant breakthrough in US-China trade negotiations, settling an issue that has made headlines for years. Experts have been analyzing the potential implications of the deal, and one expert described it as a "rare breakthrough" in US-China trade talks.
According to Suranjana Tewari, Asia Business Correspondent for BBC Technology, Beijing is calling the deal a win, but what exactly does China stand to gain from this agreement? "China's gain would be that they are able to maintain control over TikTok's global operations while also appeasing the US government," Tewari explained.
The proposed deal would see TikTok's 170 million US users transferred to a new entity, which would be owned by a group of American firms. This move is seen as an attempt to address concerns over data security and censorship on the popular social media platform.
In an interview with BBC Business, Osmond Chia, Business reporter, noted that the deal would also provide China with a significant economic benefit. "China's economy has been heavily reliant on exports, and this deal could potentially open up new markets for Chinese companies," Chia said.
The proposed sale of TikTok's US operations to American firms is seen as a compromise between the two countries' differing demands. The US government had been pushing for TikTok to be sold to an American company, while China had insisted on maintaining control over the platform.
According to reports, the deal would see ByteDance, the Chinese parent company of TikTok, transfer its majority stake in the US operation to a new entity. This move would allow Beijing to maintain control over the global operations of the platform while also addressing concerns over data security and censorship.
The proposed deal is seen as a significant development in the ongoing trade tensions between the US and China. The two countries have been engaged in a series of high-stakes negotiations, with both sides seeking to address their respective concerns over trade, technology, and security.
As the two countries continue to discuss terms, experts are warning that the deal may not be without its challenges. "The biggest challenge will be ensuring that the new entity is able to maintain control over TikTok's global operations while also addressing the concerns of the US government," according to one expert.
In a statement released on Thursday, the White House confirmed that President Donald Trump and his Chinese counterpart Xi Jinping would discuss terms on Friday. The outcome of these talks will have significant implications for both countries and could potentially set a precedent for future trade negotiations.
As the situation continues to unfold, one thing is clear: the proposed deal over TikTok's US operations marks a significant turning point in the ongoing trade tensions between the US and China.
This story was compiled from reports by BBC Technology and BBC Business.
