Washington/Beijing: A major step has been taken towards ending the long-running TikTok dispute between the US and China. Officials from both countries announced on Monday after trade talks in Madrid, Spain, that they have agreed on a framework to separate TikTok from its Chinese owner ByteDance and transfer it to US-controlled ownership. The deal will be between private parties, but it will be finalized by a phone call between US President Donald Trump and his Chinese counterpart Xi Jinping on Friday.
This agreement will avoid the ban on TikTok in the US, which was to come into effect on September 17. Last year, the US Congress passed a bipartisan law stating that if TikTok’s US operation is not separated from Chinese ownership, it will be completely banned in the US. The reason for this was national security concerns – US officials believe that ByteDance, which is based in Beijing, can hand over user data to the Chinese government under China’s national security laws.
Former FBI director Christopher Ray had warned senators that apps like TikTok could be used to collect confidential information, such as sensitive data related to gun control, abortion and religion.US Treasury Secretary Scott Bessant and US Trade Representative Jameson Greer confirmed the framework at a press conference in Madrid. Bessant said, “This is an agreement between two private parties, which will bring TikTok under US control. Commercial terms have been finalised, but will not discuss details.” He added that the Chinese side made some aggressive demands, but the US did not put national security at stake at any cost. On the other hand, China’s top trade negotiator Li Chenggang said that the two sides have had “honest and in-depth exchanges”, and the framework is based on resolving TikTok issues cooperatively, reducing investment barriers and promoting economic-trade cooperation.
Li made it clear that China would not make any deal at the cost of its principles or the interests of companies.This agreement is the result of efforts going on since Trump’s first term. In 2020, the Trump administration tried to make a deal with American companies like Oracle to buy the US part of TikTok, but it stalled. Trump himself had said that he was thinking in the direction of a 50-50 joint venture, but how much Chinese ownership could be legally allowed remained a matter of debate. A similar announcement was made in March this year, but it could not be completed. Now Trump told reporters at the White House, “We have not yet decided how much share China will get, but will talk to Xi on Friday and sort it out. This will make the youth of our country very happy!”TikTok, a short-video platform with more than 1.5 billion users worldwide, is very popular in the US, especially among the youth. If banned, millions of influencers, creators and businesses would be affected.
Experts believe that this deal will not only save TikTok, but will also open the way to reduce trade tensions between the US and China. Wendy Cutler of the Asia Society Policy Institute said, “This is a way forward for both sides, which is an important step towards resolving the long dispute.” However, the final approval of the deal will require the consent of the Republican-controlled Congress. Apart from this, other issues of the trade war like tariffs, export controls, Chinese investment and ban on chemicals like fentanyl are still unresolved. US officials said that after Friday’s call, Trump may meet Xi during his Asia trip in late October, which can lay the foundation for a comprehensive trade agreement. But analysts are warning that trade obstacles still remain, which can prolong this process. Overall, this development seems to be a positive turn in US-China relations, but the implementation of the full deal will have to wait. TikTok users hope that their favorite app will now run without any interruption.
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