The Kaipher Editorial Team 
President Donald Trump and Chinese President Xi Jinping will hold a pivotal phone call at 9 a.m. ET today to finalize a framework that would keep TikTok operational in the United States while also addressing broader U.S.–China trade tensions. The announcement follows Treasury Secretary Scott Bessent’s confirmation that negotiators reached a “framework” agreement in Madrid earlier this week (Reuters).
Key Deal Terms
- 80% U.S. Ownership: A consortium led by Oracle, Silver Lake, and Andreessen Horowitz would acquire an 80% stake in TikTok’s U.S. operations, forming a new American entity with a board dominated by U.S. appointees and one government-appointed seat.
- 19.9% ByteDance Stake: ByteDance would retain a 19.9% minority share, carefully set just below the 20% cap mandated by U.S. law.
- Data Hosting Continuity: Oracle will continue hosting all U.S. user data at its Texas facilities under the existing Project Texas arrangement.
- Algorithm Licensing: China’s Cyberspace Administration indicates the deal includes licensing TikTok’s recommendation algorithm, allowing the new American entity to use the proprietary engine under an export-licensing framework—though U.S. lawmakers remain concerned about potential ongoing Chinese influence (Time).
Trade Truce and Tariff Talks
The call takes place against the backdrop of a temporary tariff truce expiring in early November. Under the current agreement, U.S. duties on Chinese imports stand at 30%, while China levies 10% on American goods. Should the truce lapse, tariffs could revert to triple-digit levels imposed earlier this year. Trump has signaled willingness to extend the truce on existing terms, with further trade negotiations slated for about a month after today’s call.
Political and Strategic Stakes
- Domestic Politics: Trump credits TikTok with engaging younger voters during his 2024 campaign, making the app’s preservation a political priority.
- Beijing’s Leverage: For Xi, finalizing the TikTok deal strengthens China’s negotiating position on tariffs, technology restrictions, and Taiwan-related tensions.
- Congressional Scrutiny: The House Select Committee on the Chinese Communist Party insists the algorithm must be “truly in American hands” to satisfy national-security requirements, warning that any Chinese control could enable surveillance or influence operations.
Looking Ahead
A successful call could clear the path for implementing legislation in Congress before the December 16 divestiture deadline. It may also pave the way for an in-person summit between Trump and Xi at the Asia-Pacific Economic Cooperation meeting in South Korea from October 30 to November 1, signaling a potential thaw in bilateral gridlock.
