The long-standing TikTok crisis between the US and China has reached a critical juncture. In negotiations aimed at preventing TikTok from being banned in the US, the parties have come very close to reaching an agreement. Following a phone call between US President Donald Trump and Chinese President Xi Jinping, official statements were released regarding the current status of the talks.

US and China Agree on TikTok

In a statement, Trump stated that he had a wonderful meeting with Xi and that the TikTok deal had been approved. Trump said, “We have great investors. We look forward to seeing this deal completed.”

Trump suggested that signing the agreement may now be a formality, emphasizing that TikTok will be sold to US companies and that the US will retain full control.

The Chinese side, however, presented the meeting with more cautious language. According to Chinese state media, President Xi stated that the government respects the company’s will, is pleased that the business negotiations are being conducted in accordance with market rules, and that a solution that complies with Chinese law and respects the interests of both parties is possible.

The most notable detail among the agreements in the talks was a new TikTok app to be developed specifically for US users. This app will continue to use ByteDance’s algorithm technology, but US investors will retain management and operational control of the platform. It also envisages a payment of billions of dollars to the Trump administration.

No formal signature has yet been signed for the agreement to take effect. The Trump administration announced the fourth extension of the previously granted deadline for a potential ban on TikTok. With the new deadline, the parties must finalize the agreement by December.