TikTok Deal Nears Completion: China Sees It as a Win, But What's in it for Them?
A long-awaited deal over TikTok may be close to being finalized, with US President Donald Trump and his Chinese counterpart Xi Jinping set to discuss terms on Friday. According to reports, top officials from both sides have struck a "framework" agreement that could see TikTok's US operations sold to a group of American firms.
The proposed deal has been hailed as a rare breakthrough in US-China trade negotiations, which have been marred by tensions and disagreements for years. If the deal goes through, it would settle an issue that has made headlines for years, affecting 170 million US users who rely on the popular social media platform.
According to experts, a final deal might see TikTok's US operations sold to a group of American firms, potentially led by Oracle or Walmart. This would allow the Chinese-owned company to maintain its presence in the US market while addressing concerns over data security and censorship.
China is calling the proposed deal a win, but what exactly does it mean for them? According to Suranjana Tewari, Asia Business Correspondent at the BBC, "Beijing might get a significant stake in the new entity, potentially giving them a foothold in the US market." This could be seen as a strategic move by China to expand its influence in the global tech industry.
The deal has been years in the making, with concerns over data security and censorship driving the negotiations. In 2020, the Trump administration launched an investigation into TikTok's ties to the Chinese government, citing national security risks. The company was eventually forced to sell its US operations to a group of American firms, but the deal stalled due to disagreements over terms.
The proposed framework agreement has been seen as a compromise between the two sides, with reports suggesting that it would address concerns over data security and censorship while allowing TikTok to maintain its presence in the US market. According to Osmond Chia, Business reporter at the BBC, "The deal is not just about TikTok; it's about the broader implications for US-China trade relations."
While the details of the proposed deal are still unclear, experts believe that it would be a significant step forward in US-China trade negotiations. As one expert noted, "A final deal would be a rare breakthrough in US-China trade talks, and it would settle an issue that has made headlines for years."
This story was compiled from reports by BBC Technology and BBC Business.
