Truce & TikTok: Trump Hints at Extending Trade Truce
US President Donald Trump hinted he could extend the trade truce with Chinese President Xi Jinping when the two are scheduled to speak Friday at 9:00 a.m. Washington time. At a press conference with British Prime Minister Keir Starmer, Trump said "we're pretty close to a deal" and left open the option of an extension under the same terms as the current deal.
In the same call, Trump said the TikTok deal would be finalized "in conjunction with China," in line with the framework of the deal the US and China have reached to maintain TikTok's operations in the US. Essentially, it would require a US entity to own majority ownership of TikTok's US operations, with a maximum Chinese share of 20%.
The US-led consortium mentioned in various reports includes Oracle, Silver Lake, and Andreessen Horowitz, along with other existing US investors in ByteDance. The scheme includes a majority American board and the placement of US user data on Oracle's infrastructure. Technical details—including algorithm licensing—are still being scrutinized by regulators and politicians.
This move comes amid a temporary trade truce that has eased tariff escalations this year, as well as the two countries' political and economic maneuvering over strategic technologies. The outcome of the Trump-Xi call will be closely watched by markets for signals: whether the truce will be extended, whether the TikTok deal is sealed, and when their first face-to-face meeting will take place. (ads)
Source: Bloomberg.com
