Xi and Trump hold pragmatic, positive & constructive talks - Xinhua.

Xi and Trump hold pragmatic, positive & constructive talks - Xinhua.

In a significant development in US-China relations, President Donald Trump and Chinese leader Xi Jinping are set to engage in talks aimed at finalizing a deal involving TikTok. The discussions, scheduled for Friday, are expected to address key issues such as technology exports and intellectual property licensing.

The US Treasury Secretary, Scott Bessent, has confirmed that a framework agreement has been reached, paving the way for the talks. Trump had earlier stated that he will speak to Xi Jinping to finalize the deal. This marks the first direct engagement between the two leaders since June.

TikTok's American operations are slated to be acquired by an investor consortium comprising Oracle Corp., Andreessen Horowitz, and Silver Lake Management LLC. Under the proposed deal, ByteDance Ltd.'s stake in TikTok would be reduced to below 20%, as per a US national security law passed in 2024. This move aims to satisfy the law and avoid a potential ban in the American market.

China has agreed to review TikTok's technology exports and intellectual property licensing, aligning with the principles of mutual respect and peaceful coexistence. The Chinese government will examine and approve relevant matters involving TikTok, including the export of technology and licenses used in intellectual property.

The talks are also expected to address concerns about US sanctions and urge Washington to lift restrictions as soon as possible. The deal, if completed, would allow TikTok to continue operating in the US, potentially removing a significant sticking point in US-China relations.

The negotiations, which began during Trump's first term, have seen several extensions of the deadline for enforcement of a potential ban. The latest extension was set to September 17, but Trump is expected to move the deadline again if a deal is not finalized by then.