Leaders Reach Breakthrough After Long Talks
In one of the biggest Tech updates of the year, former US president Donald Trump and Chinese president Xi Jinping. They held a phone call on Friday morning that lasted nearly one and a half hours. Both leaders agreed on a deal that would allow TikTok to continue operating in the United States, but under American ownership. This is a major step forward in a dispute that has been going on for years between Washington and Beijing.
Trump described this outcome as a win, calling it. TikTok approval in a social media post after the call was over. Chinese media, on the other hand, said the conversation was positive and constructive, though they avoided sharing too many details about the conversation. For now, this agreement is one of the latest news highlights The deal, America Madhu with China over TikTok.
Structure of TikTok Deal
The deal transfers about 80% of TikTok‘s US operations to a group of American investors, with its parent company ByteDance keeping less than 20%. Oracle, a major American technology company, will lead this group along with Andreessen Horowitz and Silver Lake Management. The reported value of the deal is between $35 and $40 billion.
Oracle will also continue to store TikTok US user data through its cloud services, making sure that the data stays in American hands. ByteDance will still license TikTok’s recommendation algorithm so that the app’s content and features are similar. The new company will be run by a board that is mostly American, including one member directly appointed by the American government.
This plan and structure have been compared to other security agreements. Foreign companies were allowed to invest in America, but still faced strong American rules. Many experts say this plan could bring stability to TikTok’s future in the US market.
Wider Trade Talks And Next Steps
The conversation between Trump and the Chinese president was not only about TikTok. Both leaders also talked about trade issues between China and the US. Trump said that they were very close to details on all of it, signalling progress beyond just the social media app. In return, Xi asked the US to avoid new trade restrictions and to keep the corporation moving ahead.
There are also a few hands that the two leaders might meet in person during the Asia Pacific Economic Corporation (APEC) summit, which will happen in South Korea later in October. Trump confirmed that both sides are looking forward to this meeting.
However, the deal still needs approval from the US Congress. Lawmakers had earlier passed a law under President Joe Biden to be sold in the US. Trump has not pushed the deadline to December 16, giving time for the final agreement to be completed. Till then, TikTok’s future remains uncertain, but this agreement of hope that Apple will continue in America without any issue.
FAQs
- Will TikTok run in America?
Yes, as of now, a TikTok will run in America without any issue.
- What did Trump and Xi agree on about the TikTok agreement?
They both agreed that TikTok can keep running in the US if most of its ownership shifts to American investors.
- Who will lead to US ownership under the new deal?
Oral will lead the group of American investors, along with Andreessen Horowitz and Silver Lake management.
- When will the deal be finalised?
The deal must get Congress approval, and the deadline is set to December 16, 2025.
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