The Kaipher Editorial Team 
President Donald Trump and Chinese President Xi Jinping will hold their first direct conversation in months on Friday at 9 a.m. Washington time, marking a pivotal moment for U.S.–China relations as both leaders aim to finalize the TikTok framework agreement and address ongoing trade tensions (Yahoo Finance).
Finalizing the TikTok Ownership Structure
The call follows Treasury Secretary Scott Bessent’s announcement in Madrid that negotiators have reached a framework agreement to keep TikTok operational in the United States. Under the proposed deal, Oracle, Silver Lake, and Andreessen Horowitz would lead an American consortium controlling 80 percent of TikTok’s U.S. operations, while ByteDance would retain a 19.9 percent stake—just below the U.S. legal cap (Forbes). The new U.S. entity would feature an American-dominated board, including one seat reserved for a government-appointed representative, and Oracle would continue hosting U.S. user data under Project Texas.
President Trump, who extended ByteDance’s divestiture deadline to December 16, praised TikTok’s value to his outreach among young voters in the 2024 election, saying, “TikTok has tremendous value, and I hate to give away value.” Chinese officials have described the framework as a “win-win” solution that respects China’s export-control laws and intellectual-property rights.
Trade War Truce and Tariff Extensions
Beyond TikTok, the leaders are expected to discuss the broader trade relationship, where a 90-day truce on tariffs is set to expire in early November. Current duties stand at 30 percent on Chinese imports to the U.S. and 10 percent on American goods sold to China. If the truce lapses, tariffs could revert to the triple-digit peaks seen in April—145 percent on Chinese exports and 125 percent on U.S. products. Trump indicated a willingness to extend the truce “on the same terms that we have now,” suggesting continuity in tariff rates to maintain stability for businesses on both sides.
Technology and Security Concerns
The conversation may also address recent Chinese claims that Nvidia violated anti-monopoly laws. In response, Trump struck a deal during his UK visit allowing Nvidia to resume certain chip shipments to China in exchange for a 15 percent revenue share on those sales. That agreement followed Trump’s meeting with Nvidia CEO Jensen Huang in England.
Lawmakers in Washington remain vigilant about algorithm licensing and data security, insisting that any TikTok deal must eliminate Chinese control over recommendation engines to prevent potential manipulation of American public opinion. The House Select Committee on the Chinese Communist Party has warned that the algorithm must not remain under Chinese influence, reinforcing that compliance with the 2024 divestiture statute is non-negotiable.
Outlook Ahead of Friday’s Call
Friday’s call will be the first direct engagement between Trump and Xi since June and could pave the way for an in-person summit later this year, should both sides find common ground. Observers will watch for indications of progress on both TikTok and trade, as well as any commitments to broader cooperation or dispute resolution mechanisms. A successful outcome could stabilize one of the world’s most important bilateral relationships, while failure to reach agreement may deepen geopolitical and economic divisions in the months ahead.
