President Donald Trump told reporters aboard Air Force One on July 4 that the United States will resume talks with China as soon as Monday or Tuesday—July 7 or 8—over a possible divestiture of TikTok’s U.S. operations. He said the two sides “pretty much have a deal,” and that discussions could involve Chinese President Xi Jinping or his representatives. reuters.com
The announcement comes after Trump granted ByteDance, TikTok’s China‑based parent, three extensions for divestiture, pushing the deadline to September 17. The law signed in 2024 orders TikTok to sell its U.S. business or shut down here to address national security concerns about user data. Trump insisted the deal would serve both nations. “I’m not confident, but I think so,” he said, adding that his strong relationship with Xi would help. theguardian.com
Talks Resume Amid Trade Tensions
Earlier this year, a near‑complete agreement collapsed when Beijing balked at negotiations in response to U.S. tariffs on Chinese imports. That spring deal would have split TikTok’s U.S. arm into a new, majority‑American company while letting ByteDance keep a minority stake. Trump’s use of tariffs as leverage underscored how deeply trade politics have become entwined with tech regulation. reuters.com
Vice President J.D. Vance, who has helped lead the buy‑out talks, praised Trump’s deadline extensions as “flexible and fair,” while warning that failure to finalize a sale would trigger a ban. Industry insiders say U.S. investors—among them Oracle, Blackstone, and Andreessen Horowitz—remain ready to step in if cagrees. ByteDance’s chiefs have said they need more time to satisfy both U.S. law and Beijing’s rules. seekingalpha.com
Legal Stakes and Security Concerns
Under the 2024 Protecting Americans from Foreign Adversary Controlled Applications Act, TikTok must prove real progress or face shutdown. The law passed with bipartisan support and was upheld by the Supreme Court. Lawmakers cite reports that Chinese staff accessed U.S. user data, fueling fears that Beijing could misuse personal information. While TikTok has built new data centers and hired outside auditors, critics say only a full divestiture can restore trust. dailysabah.com
What Happens Next
If Beijing signs off, talks could wrap up before the September deadline. But any agreement still needs Treasury and committee approvals in Congress, and possibly fresh legislation. Should China refuse, or should negotiations stall again, the White House has signaled it will enforce the divestiture rule and move to block TikTok domestically. Users and advertisers alike are watching closely. reuters.com
Short Analysis
This latest move shows how tech policy no longer stands apart from geopolitics. Trump’s claim of a near‑completed deal aims to keep TikTok alive for now, while sending a message that the U.S. can press China on multiple fronts. But real progress depends on hidden talks in Beijing, where national pride and regulatory control often outweigh bilateral goodwill. Even if a deal is struck, enforcing it will test both governments and may set a precedent for how global platforms operate under competing legal regimes.
