On September 19, 2025, a pivotal phone call between U.S. President Donald Trump and Chinese President Xi Jinping set the stage for a series of diplomatic breakthroughs, most notably an agreement that allows TikTok to continue operating in the United States. The conversation, first reported by Chinese state media and later confirmed by President Trump himself, marked a significant moment in the ongoing saga between the world’s two largest economies, whose relationship has been defined by sharp trade disputes and mutual suspicion in recent years.
According to EL PAÍS, the leaders' call confirmed that both sides had reached an “agreement” on TikTok, the wildly popular short-video platform with 170 million American users. Under mounting pressure from Congress, TikTok’s Chinese parent company, ByteDance, faced a looming ban unless it divested its U.S. operations. The legislative push, which began during Joe Biden’s presidency and was reaffirmed by the Supreme Court, cited national security concerns over ByteDance’s ties to the Chinese Communist Party. The law’s implementation, however, had been postponed three times by President Trump, who maintained that negotiations could yield a better outcome.
After their conversation, Trump took to his Truth Social platform to share his perspective: “We made progress on many very important issues including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal.” He further elaborated, “I also agreed with President Xi that we would meet at the APEC (Asia-Pacific Economic Cooperation) Summit in South Korea, that I would go to China in the early part of next year, and that President Xi would, likewise, come to the United States at an appropriate time. The call was a very good one, we will be speaking again by phone, appreciate the TikTok approval, and both look forward to meeting at APEC!”
Beijing, for its part, struck a more reserved tone. According to a statement released by Chinese state media and cited by AFP, Xi described the exchange as “frank and in-depth.” He emphasized the importance of “mutual respect, peaceful coexistence, and win-win cooperation,” and highlighted the need for both countries to “make efforts to achieve mutual respect, peaceful coexistence, and win-win cooperation.” Xi also referenced the role of the two nations as allies in World War II, urging that they “cherish peace and build the future on the basis of remembering the martyrs and history.”
On the TikTok issue, Xi stated, “The Chinese government respects the wishes of companies and is pleased to see that companies are doing a good job in trade negotiations based on market rules to reach solutions that comply with Chinese laws and regulations and balance interests.” He added, “China hopes the US side will provide an open, fair, and non-discriminatory business environment for Chinese companies investing in the United States.” This sentiment reflects Beijing’s longstanding insistence that business decisions should be governed by market principles rather than political pressure.
While Trump described the TikTok deal as all but finalized, saying it could be “a formality” pending signatures, China stopped short of confirming any agreement. ByteDance, meanwhile, issued a statement thanking both leaders for their “concern about TikTok” and pledged to “move forward with the relevant work in accordance with Chinese law, ensuring that TikTok US continues to serve its vast American user base.” As reported by AFP, the acquisition of TikTok’s U.S. operations is expected to involve a consortium including Oracle, Silver Lake, and Andreessen Horowitz, with Oracle’s Larry Ellison—a known Trump supporter—playing a prominent role.
The agreement in principle centers on separating TikTok’s U.S. ownership from ByteDance and delegating the operation of American user data and content security services. This arrangement also authorizes the use of TikTok’s coveted algorithms and other intellectual property rights by the new U.S.-based entity, addressing one of the thorniest issues in the negotiations.
The TikTok deal is just one piece of a broader, often tumultuous relationship between Washington and Beijing. The past year has seen both sides impose steep tariffs on each other’s goods, with the U.S. slapping 30 percent duties on Chinese imports and China responding with 10 percent tariffs on American products. These measures, which disrupted global supply chains, were partially rolled back after a series of negotiations in Geneva, London, Stockholm, and most recently Madrid. The tariff truce, however, is set to expire in November, leaving the future of U.S.-China economic ties uncertain.
During the call, Trump also praised China’s recent military parade commemorating the 80th anniversary of the end of its war against Japan, calling it “wonderful.” The gesture was notable given Trump’s earlier accusations that the parade, which included leaders from Russia and North Korea, was a show of force meant to intimidate the United States. Xi, in turn, voiced appreciation for the U.S. role in World War II, signaling a desire to find common ground despite underlying tensions.
Trade, however, remains a persistent flashpoint. After the Madrid talks, Beijing accused Washington of “unilateral intimidation” and expanding the concept of national security to justify sanctions against Chinese entities. Li Chenggang, China’s special envoy for international trade affairs, described these actions as “a typical act of unilateral intimidation that violates international law.” Meanwhile, the U.S. has raised concerns about Chinese companies’ access to advanced American technologies, with recent accusations against chipmaker Nvidia for allegedly violating Chinese antitrust laws.
Despite these challenges, the upcoming diplomatic calendar suggests both sides are eager to keep lines of communication open. Trump and Xi will meet in person at the APEC Summit in South Korea at the end of October, a gathering that promises to be closely watched by the international community. Trump’s planned visit to China in early 2026 will mark his first trip there since his initial presidency in 2017, and Xi’s reciprocal visit to Washington remains on the horizon.
Wendy Cutler, a former U.S. trade official now at the Asia Society Policy Institute, cautioned that many details of the TikTok deal remain unresolved, particularly regarding control of the platform’s algorithm. “Beijing is displaying a willingness to play hardball, and a need to get paid by Washington for any concessions it makes,” she told AFP. Still, the fact that both leaders are willing to meet and negotiate signals a tentative thaw in what has been, at times, a frosty relationship.
For now, TikTok’s American users can breathe a sigh of relief, at least until the next round of negotiations. The app’s fate—and the broader trajectory of U.S.-China relations—will hinge on the success of these upcoming summits and the willingness of both sides to turn diplomatic words into lasting action.