U.S. President Donald Trump said he expects a “great conversation” with Chinese President Xi Jinping in the coming days and confirmed that a long-awaited agreement over TikTok’s future in the United States is close to being finalized. The remarks signal a potential easing of tensions between Washington and Beijing after months of strained trade negotiations, national security debates, and geopolitical standoffs.
Speaking to reporters before a policy briefing, Trump said he anticipates “a very productive discussion” with Xi focused on trade, technology, and national security cooperation. He emphasized that both nations have “serious mutual interests” and suggested that a resolution on TikTok could be a confidence-building step toward broader economic cooperation.
TikTok Deal Approaches Critical Stage
TikTok, owned by China-based ByteDance, has faced intense scrutiny from U.S. lawmakers who have raised concerns over data privacy, national security, and potential Chinese government influence. A U.S. law passed earlier this year requires ByteDance to divest TikTok’s U.S. operations or face a nationwide ban.
Trump hinted that a divestment agreement involving U.S. investors is nearing completion, though he stopped short of revealing any names or financial details.
“We’re very close. TikTok has been a big issue for a long time, but we’re working toward a solution that protects American security while keeping a platform that millions of people love,” Trump said.
Sources familiar with the negotiations say the deal could involve a technology licensing arrangement, U.S.-based data storage, and new security oversight measures to satisfy national security concerns. A full sale of U.S. TikTok operations remains under consideration, but officials say the priority is ensuring data sovereignty and platform independence from China.
TikTok at the Center of U.S.–China Tech Rivalry
The agreement could become a turning point in U.S.–China tech relations. TikTok, with over 170 million American users, has become a cornerstone of digital culture, entertainment, and small business marketing. Yet the app has also been a flashpoint in Washington’s broader conflict with Beijing over artificial intelligence, 5G, cybersecurity, and semiconductor control.
China has signaled its reluctance to allow a forced sale of TikTok’s AI algorithm, calling it a strategic national asset. Beijing’s Ministry of Commerce had previously stated that any transfer would require government approval due to export restrictions on recommendation algorithms.
If Trump and Xi are able to reach a coordinated solution, it may ease friction in other areas of technology cooperation, although analysts caution that the TikTok issue could still “collapse under political pressure” if national security hawks in Congress escalate opposition.
Broader Trade Discussions Expected
In addition to TikTok, Trump confirmed that trade negotiations will be part of his upcoming discussion with Xi. Key issues on the agenda include:
- Tariffs and market access for U.S. agricultural and energy exports
- Supply chain security, especially for pharmaceuticals and microchips
- Chinese investment in U.S. infrastructure and manufacturing
- American corporate access to Chinese markets
Trump suggested that despite political differences, the economic relationship with China must be managed constructively.
“We don’t have to agree on everything, but we have to engage. The American economy benefits when we negotiate from strength, not hostility,” he said.
Political Calculations Behind the Momentum
With the 2025 election cycle intensifying, Trump’s tone on China has subtly shifted from confrontation to strategic pragmatism. While he continues to criticize China for “unfair trade practices,” analysts note that he appears eager to present a high-profile diplomatic win early in the year.
At the same time, Xi Jinping is seeking to stabilize China’s economic outlook amid slowing growth, weakened consumer sentiment, and reduced foreign investment. A coordinated TikTok deal could serve as a symbolic reset in bilateral relations that markets may welcome.
Business Community Reacts
U.S. tech and financial markets reacted cautiously but positively to Trump’s announcement. Investment analysts noted that a successful TikTok resolution could reduce uncertainty in the tech sector and offer clarity for foreign-owned platforms operating in the U.S.
Corporate reaction has also been supportive:
- Silicon Valley leaders view a deal as a way to avoid precedent-setting bans on global tech products.
- U.S. private equity firms reportedly remain interested in potential investment roles if TikTok’s U.S. business is partially spun out.
- Chinese companies are watching closely for signals on how future cross-border technology negotiations might unfold.
Outlook: A Test of Strategic Trust
While optimism has grown around a TikTok deal, analysts caution against assuming it guarantees broader diplomatic progress. U.S.–China competition remains intense, especially in AI, space tech, and Indo-Pacific security.
Still, the agreement could serve as a test of whether Washington and Beijing can resolve disputes without escalation.
If finalized in the coming weeks, the TikTok deal would be the first major U.S.–China tech settlement since the Huawei negotiations, marking a rare moment of cooperation between the world’s two largest economies.
