US President Donald Trump said he and Chinese President Xi Jinping reached an agreement in principle on the future of TikTok’s operations in the United States following a phone call on Friday.
Trump wrote on Truth Social that the discussion was "productive" and that he "appreciated" Xi's approval of the deal, which could allow TikTok’s US business to be sold to a group of American investors.
China’s state news agency Xinhua provided a more cautious statement, quoting Xi as saying Beijing "welcomes negotiations over TikTok."
The social media app, operated by Chinese firm ByteDance, had faced repeated demands to sell its US operations or risk being banned.
Trump, however, postponed the ban four times since its announcement in January and recently extended the deadline to December.
Trump told reporters that while progress had been made, the deal still needs formal signing. "We look forward to getting that deal closed," he said, noting that the US would have "very tight control" over the platform.
According to reports, the agreement would involve US firms, including Oracle, co-founded by Trump ally Larry Ellison, overseeing TikTok while licensing its algorithm technology from ByteDance.
A key point in ongoing negotiations is the ownership of TikTok’s algorithm, which determines content recommendations for the app’s 170 million American users.
Speaking in the UK alongside Prime Minister Keir Starmer, Trump avoided confirming whether an American buyer would have to develop a new algorithm or continue using the existing one.
He described TikTok as having "tremendous value" to the US, saying, "The people that are investing it are among the greatest investors in the world. And they'll do a great job - and we're doing it in conjunction with China."
China’s position, as reported by Xinhua, emphasizes market-based negotiations and compliance with Chinese law, while also urging the US to provide a "fair and non-discriminatory business environment for Chinese companies."
A ByteDance spokesperson echoed this caution, saying, "ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US," and thanked both leaders for their "efforts to preserve TikTok in the United States."
Despite these developments, some US lawmakers remain uneasy about the proposed deal.
Representative John Moolenar, chair of the House Select Committee on the Chinese Communist Party, stated, "I am concerned the reported licensing deal may involve ongoing reliance by the new TikTok on a ByteDance algorithm that could allow continued CCP control or influence."
Trump, who initially called for a TikTok ban during his first term, has recently shifted his stance, citing the platform as a key part of his 2024 electoral strategy.
In January, the US Supreme Court upheld a law requiring ByteDance to divest from its US operations, though the app only went offline briefly before the ban was postponed.
The Department of Justice has previously flagged the app’s access to US user data as a national security threat of "immense depth and scale."
The phone call between Trump and Xi is the second this year. In June, they discussed China’s export of rare earth minerals, leading to approval of export permits for US companies.
Meanwhile, Chinese and US officials have conducted four rounds of talks, delaying extreme tariffs and export controls, although issues such as tech restrictions and agricultural trade remain unresolved.
