US and China Agree to Agree on TikTok Deal, Leaving Market in Limbo
In a move that has left the tech industry scratching its head, the United States and China have agreed to agree on a deal for social media app TikTok's US operations. The agreement, which is expected to be signed "in the coming days," according to White House press secretary Karoline Leavitt, has been met with confusion and skepticism from analysts and investors.
The development comes after a call between President Donald Trump and Chinese President Xi Jinping on Friday, during which both leaders made statements that seemed to contradict each other. In a post on Truth Social, Trump said the two had "made progress" on approving the TikTok deal, while also stating that he had "approved the TikTok deal." However, Chinese state-run media reported that Xi conveyed his government's respect for ByteDance's wishes and its commitment to finding a solution that conforms to Chinese laws and regulations.
ByteDance, the owner of TikTok, issued a statement thanking both Trump and Xi for their efforts to preserve the app in the US. "We will work in accordance with market rules and take into account the interests of both sides," the company said.
The deal has been months in the making, with Trump initially threatening to ban TikTok from operating in the US due to concerns over data security and national security. However, a series of negotiations between ByteDance and the US government led to a proposed deal that would see Oracle take control of TikTok's US operations.
Despite the agreement, analysts say it is unclear what exactly has been agreed upon. "It's like trying to read tea leaves," said Daniel Ives, an analyst at Wedbush Securities. "The statement from Trump and Xi seems to suggest that they have reached a deal, but we don't know what that means or what the terms are."
The uncertainty surrounding the deal is likely to continue until it is officially signed, which could be as soon as next week. In the meantime, investors will be watching closely for any signs of progress.
Background
TikTok has been at the center of a high-stakes battle between the US and China over data security and national security concerns. The app's owner, ByteDance, is based in China and has raised concerns about its ability to comply with US regulations.
Market Impact
The deal is likely to have significant implications for the tech industry, particularly for companies that rely on social media platforms like TikTok. Analysts say that if the deal goes through, it could set a precedent for other Chinese companies looking to operate in the US.
Additional Perspectives
Some analysts are questioning whether the deal will ultimately be approved by Congress, which has been critical of TikTok's ties to China. "This is just another example of the Trump administration trying to strong-arm a deal without consulting with lawmakers," said Senator Mark Warner (D-VA).
Current Status and Next Developments
The agreement between the US and China is expected to be signed in the coming days, but it remains unclear what exactly has been agreed upon. Investors will be watching closely for any signs of progress, while analysts continue to try to make sense of the deal.
In a statement, Leavitt said that the White House would provide an update on the status of the deal once it is signed.
*Reporting by Engadget.*
