Negotiation Momentum: A High-Level Call in Focus

As of September 19, 2025, Presidents Donald Trump and Xi Jinping are holding direct talks aimed at cementing a long-awaited deal over TikTok’s U.S. business. The conversation comes after months of back-and-forth between Treasury Secretary Scott Bessent, Chinese officials, and corporate stakeholders.

The discussions are designed to transform a fragile framework into a binding agreement, preventing a nationwide ban on TikTok under the 2024 U.S. law that requires Chinese divestiture of social media platforms deemed national security risks.

Structure of the Deal: Ownership and Oversight

The emerging structure would see TikTok’s U.S. operations moved under American control, with a U.S.-dominated board, domestic servers for user data, and algorithmic oversight by U.S. authorities. ByteDance, the Beijing-based parent, may retain a minority stake—capped around 19.9%—to remain below politically sensitive thresholds.

At the heart of the negotiations is TikTok’s recommendation engine, the algorithm that drives the app’s viral success. While the U.S. seeks operational independence from Chinese influence, ByteDance has pushed for a licensing arrangement. Striking a balance here will likely determine whether Congress accepts the deal.

Market Reactions: Relief With Caution

News of the framework has eased some investor anxiety in the technology and media sectors, where uncertainty over TikTok’s future has cast a shadow on growth expectations. Should the deal advance, it would mark a rare cooperative breakthrough between Washington and Beijing at a time of heightened tensions over trade, tariffs, and technology.

Still, market sentiment remains cautious. Investors recognize that legislative hurdles and potential lawsuits could complicate implementation. Any perception of lingering Chinese influence—particularly over the algorithm—could reignite political opposition in Washington.

Political Dynamics: Domestic and Global Pressures

For Trump, delivering a TikTok solution without banning the app outright may serve as both a domestic political win and a show of strength in managing U.S.–China relations. For Xi, allowing a compromise may signal Beijing’s willingness to de-escalate tensions while maintaining symbolic ties to ByteDance.

Globally, the agreement would set a precedent for how governments handle foreign-owned technology platforms in sensitive markets. Other countries weighing restrictions on TikTok, or similar platforms, may look to the U.S.–China deal as a template.

A Turning Point for Tech Diplomacy

The Trump–Xi call represents a decisive step in one of the most closely watched tech disputes of the past decade. If the deal holds, TikTok will remain in the U.S. under a restructured model that attempts to balance national security, market stability, and user continuity.

For now, the trajectory points toward resolution, but risks remain. A breakdown in talks, congressional resistance, or disputes over algorithm control could still derail the deal. The coming weeks will determine whether TikTok becomes a case study in successful tech diplomacy—or another flashpoint in U.S.–China rivalry.