TikTok deal nearing completion with Trump's confirmation, significant advancement in US-China discussions indicated
In a significant development, negotiations between the U.S. and China are progressing towards a potential trade deal that could alleviate ongoing tensions. This deal may also include a trade agreement on tariffs, though the specifics remain undisclosed.
One of the key aspects of this potential agreement is the fate of TikTok, the popular social media platform. A consortium, including Oracle, Andreessen Horowitz, and Silver Lake Management, will lead the new U.S.-based entity for TikTok. Oracle is expected to take a leading role, with the consortium collectively owning around 80% of the U.S. business. The resulting company will be controlled entirely by American investors, marking a significant shift from its current Chinese ownership.
However, the continuation of the Chinese-controlled algorithm that powers TikTok remains a central point of negotiation. Chinese state media has confirmed a framework agreement has been reached regarding TikTok, but the details are yet to be disclosed.
President Trump has expressed confidence in reaching a broader agreement with China, but the nature of this agreement is not elaborated upon. He has also indicated a potential extension of the current tariff pause, which is set to expire in early November. Current tariff rates stand at 30% on Chinese imports and 10% on American goods.
In a highly anticipated move, a call between President Trump and Chinese President Xi Jinping is scheduled for Friday morning. The bans on TikTok and WeChat apps, initially scheduled, have been delayed, adding to the anticipation surrounding this call.
The progress in these negotiations offers a glimmer of hope for a resolution to the long-standing trade tensions between the two economic powerhouses. As more details emerge, it is expected that the public will gain a clearer understanding of the implications of these developments.
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