Who Will Buy Tik Tok

Today, we’ll look together at a development that could signal something much bigger — the beginning of a period of STABILITY in U.S.–China relations. Yes, you heard that right. Donald Trump and Xi Jinping spoke again on the phone, and it seems that things are starting to thaw.

TRUMP–XI COMMUNICATION

And if you think this is just a simple exchange, consider this: it was the first time Xi agreed to speak with Trump in three months. During that time, there had been many fruitless attempts at communication, even on neutral ground such as Geneva, London, and Madrid. Analysts stress that Xi’s acceptance to pick up the phone is itself a clear sign of a shift in stance.

During the conversation, Trump posted on Truth Social: “It was a very good call… appreciate the TikTok approval.”

The Chinese side, of course, was more cautious and diplomatic, stating via Xinhua that “the Chinese government respects the will of businesses and encourages resolving issues based on market rules and Chinese laws and regulations.”

This practically means that China did not say no to the TikTok deal. And that’s a huge step. Because let’s not forget, just a few weeks ago, the tone between the two countries resembled the Cold War. Some academics even said relations were worse than during the U.S.–USSR era, where at least there was always an active hotline.

TARIFFS

The call also had economic significance. It appears Trump showed willingness not to impose new tariffs on China. And not only that — he reportedly stated that if negotiations go well, he may also reconsider existing tariffs. This is of course not final, but it’s a very important sign of intent.

Because the U.S. knows very well that China holds “critical leverage points”: rare earths, technology, access to raw materials. It’s not easy to pressure China without consequences. So Trump’s shift looks more realistic than ever.

TIKTOK DEAL

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Many of you surely know that the discussion around TikTok has been going on for years. From national security concerns to pressure from the government for a sale of its U.S. operations to a non-Chinese owner, TikTok has been in the eye of the storm. Especially after Congress passed a law requiring ByteDance to divest or face a ban.

Well, now it seems that the agreement is… LOCKED IN.

White House spokesperson Karoline Leavitt told Fox News that the deal will be finalized in the coming days. Under its terms:
(a) 6 out of 7 members of TikTok’s U.S. board will be Americans with credentials in national and cyber security.
(b) The platform’s algorithm will also come under American control, removing all Chinese influence.
(c) ByteDance will retain under 20% of TikTok in the U.S.
(d) The new investors will be giants such as Oracle and Andreessen Horowitz.

In addition, the board member chosen by ByteDance will not participate in the security committee, further reinforcing the sense of U.S. control.

All this follows multiple executive orders by Trump and high-level negotiations. The original deadline was January 2025, but it has now been moved to December, and it seems that the transfer is already underway.

What is truly fascinating, however, is that TikTok’s value does not lie only in its user data, but in its algorithm — the one that decides what we see, what we like, and what keeps us “glued” to the screen.

As one American professor of diplomacy put it, “the algorithm is the real weapon of influence. Not the data.” And that weapon is now changing hands. You can understand why the transfer of control is so significant.

China, for its part, is expected to make an “elegant exit,” preserving as much of its prestige as possible. Perhaps this explains Xi’s measured statement during his conversation with Trump.

Every time tensions de-escalate, the markets reward it. And this Trump–Xi call and the TikTok deal were clearly such a signal of de-escalation.

Posted Using INLEO