US President Donald Trump has set off great excitement with his breakthrough announcement that the US will begin key talks with China regarding the much awaited Trump TikTok deal this week which marks a point of transition in the ByteDance divestment issue.
Trump TikTok Deal: Historic Talks Begin Monday
In what may go down as one of the most surprising recent events which the world has paid very close attention to, President Trump broke into Friday’s Air Force One press briefing to announce that the Trump TikTok deal talks will indeed begin either Monday or Tuesday of that week. Also of note is that the President reported we are “pretty much there” for a full scale agreement which has been in the works for months in the background and which reports say we have in hand.
“I report that we are to begin Monday or Tuesday to discuss with China which may include President Xi or one of his representatives. We basically have a deal,” Trump said to the press, which also put out an unusual positive report on the progress of the TikTok issue.
Revolutionary China TikTok Talks to Reorient Digital Space
TikTok’s issue is at a crossroads in U.S.-China relations, which both countries see as a key element in the resolution of the divestment issue. Trump put forth the report which came after he extended the key deadline for China-based ByteDance to divest its U.S. TikTok assets till September 17, which in turn gave more time for the very complex Trump China TikTok talks.
This spring saw the introduction of what became the framework for a deal which put in place a new U.S.-based entity for TikTok’s U.S. operations which would see majority control go to U.S. investors. That which was to be had great pushback in the form of China, which did not agree to the terms of the deal that played out as a result of Trump’s large scale imposition of taxes on Chinese goods.
ByteDance Divestment: Global Tech Issues and Options
The ByteDance divestment negotiations are much more than a case of simple business — they are a display of the larger tech competition between the world’s two biggest economies. Reports from those in the know also tell that the TikTok issue has become very much a part of the larger trade talks, with China using the fate of the app as a strategic card in the present Trump and China discussions.
According to some internal reports, China is putting off the TikTok sale approval until President Xi is confident that the full extent of strategic benefits from the trade talks with the White House has been achieved. This calculated approach, which also presents itself as a case of Chinese patience, plays out how the TikTok issue has transformed into a key element in the very complicated U.S.-China economic puzzle.
Trump’s Conviction in the TikTok Talks
Despite tough issues at hand, President Trump reported that we see some cooperation from China in the TikTok deal talks. When asked about the level of confidence in that which China agreed to the put forth plan, he said:
“Not very confident I tell you, but I do think so. President Xi and I have great relationship and I think that is what made this possible. I think the deal is good for China and it is good for us.”
This diplomatic strategy is a reflection of the fine line which the US and China walk in the TikTok talks, which see both countries try to protect their national security at the same time as they protect the commercial interests of the large scale of American users and the large digital economy.
Industry Members Prepare for the Historic TikTok Deal
TikTok has drawn in the attention of large tech and investment companies which in turn has seen the emergence of several groups which are putting themselves forward as buyers of the U.S.-based elements of the platform. Also reported is that present ByteDance investors, which include General Atlantic and Susquehanna International Group, are at the front in the talks which are had regarding the sale of TikTok.
Private equity players like Blackstone and venture capital company Andreessen Horowitz also put in their bid for a piece of the TikTok action which they see as a great value play for what is the world’s largest social media platform. In the meanwhile, ByteDance is putting forth a structure which will see Chinese ownership drop below the 20% which the U.S. legislation requires.
Social Media Abounds With TikTok Deal Excitement
The news of Trump’s TikTok talks has set social media aflame with discussion which is mixed between that of excitement and skepticism regarding what may come of it. On Twitter in particular, the discussion of the TikTok China deals has been very active with many users bringing up the large scale political import of the issue.
Facebook has been a platform for discussion of the national security issues related to the TikTok deal; users are put forward pro and con as to if the put forth structure does in fact address issues of data privacy and content manipulation. Also playing out is the larger public’s interest in how the ByteDance divestment plays out for the day-to-day use of the 170 million plus American TikTok users.
TikTok’s Economic Impact Which Broke the Mold of What Is Possible
In what may be the largest tech deal of recent years, TikTok is put forward for sale which if reports are to be believed could be worth tens of billions of dollars in the US alone. What is being talked about in terms of the sale structure is a new American based entity which will have large degree of independence from ByteDance’s Chinese parent company which may in turn set a precedent for how we see future cross border tech investments.
Trump’s TikTok deal talks also put into view the changing dynamic of international business in the digital age which sees tech platforms play at once as business players and as elements of national strategy. If the US is to succeed in these TikTok China talks, we may see parallel deals play out between other Chinese tech companies and the US.
Timeline and Moving Forward with the TikTok Deal
As of the September 17 divestment deadline approaching, the timeline for the TikTok deal’s completion is still very tight but doable according to administration sources. Also this week, which marked the start of formal Trump China TikTok talks, indicates that both parties are dedicated to coming to a mutual agreement.
TikTok’s deal, into which US and Chinese officials will engage in what may be many rounds of discussion, also to have in play will be technical experts from each country who will look to address the complex issues of law and operation which come with the transfer of this very large digital platform. Success of these TikTok China talks will put to the fore how well both countries do at what they have to put forward which may be hard — which is to protect their own national interests while at the same time coming to an agreement.
Conclusion: Historical Chance for US-China Cooperation
The Trump TikTok agreement puts forth an unusual chance for the US and China to prove that which is positive still goes on in the issue of trade as we see larger scale trade tensions play out. The TikTok buyout talks put forth a solution for both countries to address what they see as valid national security issues at the same time which also keeps the commercial and cultural value which TikTok brings to large scale of users worldwide.
As we go into this week’s TikTok deal talks, global audiences will be tuned in to see if diplomacy is the key that finally opens this deal which has seen many previous attempts at a resolution fail. What happens in these coming TikTok China talks may in fact determine the fate of what is the world’s most used social media platform also setting the stage for how the U.S. and China will do in tech cooperation in the digital age.
The rollout of the Trump TikTok agreement has seen great success thus far and with formal discussions to come very soon, the coming weeks will be key in seeing if this diplomatic breakthrough indeed delivers what both countries and TikTok’s global user base is looking for.
News References: Reuters economictimes straitstimes
