Breaking News: Trump and Xi Set to Finalize High-Stakes TikTok Deal Today – What It Means for You!

President Donald Trump and China’s leader Xi Jinping spoke on a call recently to wrap up a deal that would sell most of TikTok’s US assets to American investors. This move ends a long saga that began during Trump’s first term. The TikTok situation has also influenced broader U.S.-China relations in recent months.

US Treasury Secretary Scott Bessent and Chinese Vice Minister of Commerce Li Chenggang announced a framework for the sale during negotiations in Madrid. This agreement aims to keep TikTok running in the U.S. A bipartisan bill signed by President Joe Biden on January 19 requires TikTok to give up at least 80% of its U.S. assets to American operators to continue its existence here. Trump had previously paused the enforcement of this ban while seeking a sale.

The specific terms of the deal are still under wraps, but sources familiar with it revealed that U.S. venture capital firms, private equity funds, and tech companies will be the primary investors. Companies like Oracle and Silver Lake are set to hold a majority stake, while Chinese investors would retain the remaining 20%.

This new organization will be governed by a U.S.-dominant board, which will include someone appointed by Trump’s administration. According to The Wall Street Journal, it’s important to confirm that these details are only speculation until officially announced by the administration.

The recent conversation is part of a push for a Trump-Xi meeting, which has been anticipated for months. U.S. officials indicated that without a resolution on TikTok, this meeting might not happen. Now, however, it seems more likely when Trump visits Asia later this month.

China has been cautious about allowing ByteDance to relinquish its U.S. interests. However, as tensions grew, especially following China’s recent announcements about Nvidia, a shift in their strategy appears to have taken place.

While organizing an American-led investor group to purchase TikTok’s U.S. assets had begun months ago, discussions stalled due to trade tensions and increased tariffs. Following a reduction in tariffs, discussions resumed, with both presidents showing renewed interest in finding a resolution.

Interestingly, TikTok momentarily went offline in the U.S. just before a new law regarding foreign-controlled apps came into effect. However, Trump promised to take executive action ensuring that U.S. companies wouldn’t face penalties for hosting TikTok on their platforms.

Critics argue that Trump’s repeated extensions regarding the TikTok ban undermine Congress’s will. Initially, Trump sought to ban TikTok, a plan that didn’t materialize but later gained traction under Biden’s support.

TikTok now has about 170 million users in the U.S., mainly younger individuals. This demographic significantly supported Trump’s campaign in 2024, contrary to trends in previous years. Trump has stated that a deal is close and recent developments might finally lead to a breakthrough.

According to the Pew Research Center, social media has become an integral part of political campaigning, highlighting how platforms like TikTok can shape emerging political landscapes.