Trump announces upcoming meetings with Xi in South Korea and his subsequent visit to China in the ensuing weeks.
In a significant development, U.S. President Donald Trump and Chinese leader Xi Jinping held a phone call on Friday, making progress on the approval of the TikTok deal. The conversation took place in reference to the Asia-Pacific Economic Cooperation group of 21 economies on the Pacific Rim.
Trump wrote on Truth Social that Xi will come to the United States 'at an appropriate time.' However, he gave no further details about the TikTok deal in the post. The Chinese government, in a statement, expressed a desire for productive commercial negotiations in keeping with market rules to reach a solution that complies with China's laws and regulations.
The TikTok ownership framework deal, which was said to have been reached early this week during trade talks in Madrid, is a key part of the ongoing negotiations. The deal involves ByteDance, TikTok's parent company, and the transfer of its U.S. operations. Trump has extended deadlines for TikTok to be spun off from ByteDance several times.
U.S. officials have expressed concerns about ByteDance's roots and ownership, as well as the proprietary algorithm that populates what users see on TikTok. Wendy Cutler, senior vice president of the Asia Society Policy Institute, warned that important details surrounding such matters as who would own and control the algorithm remain unclear.
The trade war between the U.S. and China in Trump's second term has had a significant impact on U.S. farmers. American farm exports to China fell 53% from January through July compared to the same period last year. The damage was even greater in some commodities, with U.S. sorghum sales to China down 97%.
The U.S. and China have held four rounds of trade talks, with another round likely in the coming weeks. Both sides expressed the need for mutual respect, peaceful coexistence, and win-win cooperation. However, Wendy Cutler of the Asia Society Policy Institute suggested that Beijing is willing to 'play hardball' and may demand concessions from Washington.
Trump and Xi discussed a range of issues beyond the TikTok deal, including trade, Fentanyl, and the war between Russia and Ukraine. Trump stated that his relationship with China is 'very good,' but he did not mention any plans to raise tariffs on Beijing over its purchase of Moscow's oil.
In a positive note, Sean Stein, president of the U.S.-China Business Council, expressed optimism about the call between Trump and Xi, calling it 'a really important step in getting the trade relationship back on track.'
Trump also plans to meet Xi Jinping at a regional summit in South Korea at the end of October. He also plans to visit China in the 'early part of next year.' Xi urged the U.S. to avoid imposing any trade restrictions. Chinese officials said a consensus was reached on authorization of the 'use of intellectual property rights,' including the algorithm, and that the two sides agreed on entrusting a partner with handling U.S. user data and content security.
However, no deals have been announced on tech export restrictions, Chinese purchases of U.S. agricultural products, or fentanyl. The leaders' discussions mark a significant step towards resolving ongoing trade tensions between the two nations.
