China has officially labeled the framework agreement for TikTok’s U.S. ownership transfer as a "win-win" scenario. The nation’s Ministry of Commerce indicated that it will conduct a review of the popular app’s technology exports and intellectual property licensing, signaling a potentially smoother path forward for the deal.
Key Takeaways
- China views the TikTok ownership deal as mutually beneficial.
- Beijing will review the app’s technology and IP transfers according to its laws.
- The agreement is seen as crucial for ongoing U.S.-China trade talks.
Deal Details and International Relations
The agreement, which involves transferring TikTok’s U.S. assets from China’s ByteDance to U.S. owners, is reportedly similar to a previous arrangement that was halted due to escalating U.S. tariffs on Chinese goods. This progress on the social media app, which boasts 170 million users in the United States, is considered vital for facilitating future discussions between the world’s two largest economies as they navigate their trade relationship beyond the current tariff truce.
Official Stance and Future Review
A commentary published in the official People’s Daily, the newspaper of the governing Communist Party, stated that the consensus reached with the United States on the TikTok issue is founded on the principles of mutual respect, peaceful coexistence, and win-win cooperation. The article, signed "Zhong Sheng" (Voice of China), explicitly mentioned that China will review matters concerning TikTok’s technology exports and intellectual property licensing in accordance with legal procedures.
Diplomatic Progress and Extended Deadline
Following meetings with Chinese negotiators in Madrid, U.S. Treasury Secretary Scott Bessent confirmed that a September 17 deadline, which could have impacted the app’s operations in the U.S., might be extended by 90 days. This extension is intended to allow sufficient time for the finalization of the deal. Investors on both sides of the Pacific are now anticipating a call between U.S. President Donald Trump and Chinese President Xi Jinping, expected on Friday, which should formally confirm the agreement.
Sources
Founder Dinis Guarda
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