Hey, bear in mind how U.S. President Donald Trump did that massive signing ceremony for the U.S. TikTok deal within the Oval Workplace final month, through which he mentioned that Individuals must be grateful to him for saving the app?
Yeah, that appears to haven’t had quite a lot of which means, exterior of symbolic illustration, as a result of regardless of repeated assurances {that a} U.S. TikTok sale is imminent, the Chinese language authorities continues to be but to approve any proposed deal on the app.
And with out the CCP’s approval, no sale of any form can go forward.
Earlier within the week, U.S. Treasury Secretary Scott Bessent mentioned that he had held optimistic talks with Chinese language officers, and that he anticipated the TikTok U.S. deal to be authorised after Trump met with Chinese language President Xi Jinping on Thursday.
But, on the conclusion of that assembly, we’re seemingly no nearer to an precise deal being established, although the 2 leaders apparently did come nearer to commerce agreements on a number of fronts.
However TikTok, particularly, was apparently not one among them, although the U.S. authorities claims that progress was made on the TikTok challenge.
Following the discussions, Bessent informed the ready media that:
“We finalized the TikTok settlement when it comes to getting Chinese language approval, and I might anticipate that will go ahead within the coming weeks and months, and we’ll lastly see a decision to that.”
Chinese language state media, in the meantime, has reported that:
“China will correctly resolve points associated to TikTok with the U.S. facet.”
Considerably much less committal, whereas China Day by day has additional reported that:
“Financial and commerce consultations between China and the U.S. display that – guided by the rules of equality, respect, and mutual profit – the 2 sides can discover options to points by means of dialogue and cooperation. These outcomes didn’t come simply, nonetheless, China seems ahead to working with the U.S. to make sure their efficient implementation, which is able to create better certainty and stability in China-U.S. financial relations and the worldwide financial system.”
Yeah, that doesn’t sound like a ringing endorsement for the proposed TikTok deal, it sounds extra like China is ready to see if the U.S. involves the desk in assembly the commitments that it’s made on different commerce parts earlier than China will contemplate shifting any additional.
The issues right here would relate to America persevering with to impose tariffs on Chinese language imports, proscribing Chinese language commerce within the U.S. Conceptually, that may pressure extra companies to make use of American labor and merchandise, as an alternative of sourcing such from China as an alternative. Which is best for America, in idea if nothing else, however it’ll affect China considerably, which has been the principle focus of those newest discussions.
Evidently China’s now ready to see if the U.S. drops its tariffs, earlier than it gives any response to the TikTok proposal. Which may imply that it’d undergo, ultimately, and it might be that Chinese language officers have offered tacit approval, depending on different components.
However we don’t know, and it’s seemingly that nobody does, as China might be maintaining its playing cards near its chest in commerce negotiations.
Although we do know that CCP officers have been incensed by America’s commerce posturing.
Following the most recent tariffs imposed by the U.S. on China-based commerce earlier this month, Chinese language officers strongly criticized America’s commerce method, suggesting that U.S. commerce methods are extra about protectionism than open alternate.
Chinese language officers have recommended that the demonization of Chinese language firms, like TikTok, is “simply an excuse for the U.S. to impose protectionist tariffs on Chinese language items within the face of China’s extremely aggressive financial system.”
Which sounds sort of true, in that Trump’s tariff method is precisely that, imposing heavy monetary penalties on any enterprise that appears to capitalize on the alternatives of overseas commerce, so reasonably than adhering to free market rules, the Trump administration is forcing American suppliers to take a extra insular method.
Which, if Trump doesn’t cut back these tariffs, might up the worth of any potential TikTok sale association.
Certainly, reviews have additionally recommended that to ensure that a TikTok deal to be authorised, Chinese language officers will push for a equally expansive association that goes past direct commerce. That, probably, may see the CCP calling on Trump to assist China’s possession declare over Taiwan, which the U.S. has lengthy opposed, in assist of Taiwan’s independence.
It’s superb to think about {that a} short-form video app that constructed its viewers on the again of dance traits may now play a key position within the sovereignty of an unbiased nation, however that’s the place we’re at within the yr 2025.
However proper now, at this time limit, it looks like the ball is now in Trump’s court docket, in lowering tariffs and issues in China-U.S. commerce.
If he does that, as he’s seemingly pledged in at this time’s assembly, the TikTok deal might undergo.
