China is being very scarce with details when it comes to working with the U.S. on TikTok. Beijing will work with Washington to “properly resolve” issues around the divestiture of the U.S. operations of TikTok, China’s Commerce Ministry said in a statement Thursday, according to a CNBC translation.
“It’s the lack of specifics that will most certainly add to policy miscalculation risk,” Louise Loo, head of Asia economics at Oxford Economics, said in an email. “We don’t think there’s enough as yet to believe Beijing’s interests in the TikTok contention truly aligns with President Trump’s motivations to spin off the entity’s U.S. business.”
The ministry did not provide a timeframe or any further details. The comment followed a high-stakes meeting earlier in the day between President Donald Trump and Chinese President Xi Jinping, the first in-person gathering of the leaders since Trump took office in January.
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TikTok, owned by Chinese company ByteDance, has long been a flashpoint in U.S.-China technology tensions due to concerns over data privacy, national security, and content influence. U.S. authorities worried that Chinese ownership could allow access to U.S. user data or manipulation of TikTok’s algorithm, while China emphasized that any solution must protect its enterprises’ sovereignty and rights, not just ensure “fair treatment.”
Negotiators from both countries reached a preliminary framework agreement to address these concerns. Under this plan, a U.S.-based entity would take majority control of TikTok’s U.S. operations, while ByteDance would retain a minority stake. American user data would be stored under U.S. control, and the recommendation algorithm would either be licensed, rebuilt, or managed through a hybrid approach for the American market.
This development represents a broader shift in the U.S.-China tech relations, signaling a willingness to negotiate major company-level disputes rather than resort to outright bans or unilateral action. While it mitigates immediate tension, many key aspects—such as algorithm oversight, Chinese ownership limits, and enforcement of U.S. data controls—are still provisional.
READ: Trump expected to sign a TikTok deal on Thursday (
The TikTok situation illustrates the complex intersection of technology, geopolitics, and national security in the digital age. The preliminary U.S.-China framework highlights both countries’ recognition that high-profile tech companies can become flashpoints for broader strategic and economic concerns. While the agreement aims to balance U.S. data protection and algorithm oversight with China’s desire to safeguard its enterprises, the lack of finalized details underscores the fragility of such arrangements. This scenario demonstrates the risks of misalignment between governments’ goals, with potential consequences for policy, commerce, and public perception.