On Tuesday, President Donald Trump signed an executive order that extends the enforcement of a TikTok ban in the United States for another three months. This decision was crucial to prevent the popular social media app from becoming unavailable in the country, as the previous extension was set to expire on Wednesday. Trump’s administration has now extended the TikTok ban three times since its initial implementation on January 19, just one day before he officially took office.
The Trump administration announced on Monday that a deal has been reached between the United States and China to ensure TikTok can continue operating long-term in the US. While the specifics of the agreement remain undisclosed, it is expected that an American-backed buyer will acquire TikTok’s US assets. This arrangement is likely to be finalized after a phone call between Trump and Chinese leader Xi Jinping scheduled for Friday.
Trump has been actively seeking a deal to transfer TikTok’s US operations from Chinese control to American investors. For months, this endeavor faced resistance from China. However, US Treasury Secretary Scott Bessent indicated that China ultimately relented following Trump’s serious threat to shut down TikTok in the United States. “What turned the tide was a call that Ambassador Jamieson Greer and I had with President Trump the night after the first day of negotiations,” Bessent explained in an interview with CNBC.
Bessent anticipates that Trump and Xi will finalize the deal during their upcoming phone call. He noted that significant progress on organizing an American-led investor group to buy TikTok’s US assets was made back in April. However, the negotiations stalled when Trump imposed his “Liberation Day” tariffs, effectively imposing an embargo on all Chinese goods. After lowering the tariffs, discussions between the US and China resumed, with both leaders expressing a renewed interest in TikTok negotiations.
During the talks, key issues such as US national security concerns and China's approval of the deal were paramount. Bessent emphasized, “We were not willing to give up national security in favor of the deal.” Fortunately, both parties reached a consensus on several agreements that would not compromise US national security in future dealings. Bessent expressed confidence that the terms of the deal and the identities of the involved investors would be revealed in the coming days or weeks.
“President Trump showed great leadership and fortitude for what he wanted to see in this deal,” Bessent stated, reflecting on the negotiation process. He believes the outcome is highly satisfactory for US interests. Additionally, Bessent hinted at another leverage point in the negotiations: a meeting that China has been eager to arrange between Xi and Trump. US officials have indicated that reaching a TikTok agreement is a crucial step toward organizing this significant meeting, which could take place as early as next month.
This ongoing saga surrounding TikTok illustrates the complexities of US-China relations and the pivotal role that social media plays in national security discussions. As negotiations continue, all eyes will be on the upcoming phone call between Trump and Xi, which could determine the future of TikTok in the United States.
