Following U.S. President Donald Trump’s approval of a deal that could keep TikTok alive in the U.S., China has remained conspicuously quiet. This silence is notable, as Beijing still has the power to ultimately decide the app’s fate. During the signing of an executive order on the deal, Trump said that he had “gotten the go ahead” from Chinese President Xi Jinping. However, no representatives from ByteDance, TikTok’s owner, were present at the signing, and the company has not issued a public statement. Chinese state media has also remained largely silent, with the exception of one state-affiliated social media account that cited a Fudan University professor who described the agreement as a “win-win” for both countries.
The deal, as laid out in Trump’s executive order, would create a new joint-venture company to oversee TikTok’s U.S. business, data, and algorithm, with ByteDance retaining a less than 20% stake. According to the order, this would satisfy the requirements of a national security law that requires ByteDance to divest from TikTok’s U.S. operations or face an effective ban. However, Chinese media outlet LastPost reported that TikTok U.S.’s operations would be divided into two separate companies, with one responsible for e-commerce, brand advertising, and managing ties with international operations.
A Win-Win or a Win-Lose?
The fate of TikTok in the U.S. has long hung in the balance, with lawmakers from both major political parties warning that Beijing could gain access to sensitive data or use the platform to influence public opinion. The app’s influence is growing, with a Pew Research survey finding that a fifth of adult Americans now get their news from TikTok, up from just 3% in 2020. The Supreme Court upheld the law to ban the app unless ByteDance divests, but Trump has extended the deadline multiple times as he sought a deal.
Experts have said that China has very little incentive to allow a ByteDance divestment. A readout of a call with President Xi Jinping seemed to tell a different story than Trump’s statement, with Xi saying his government would “be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides.” James Sullivan of JP Morgan said on CNBC that Trump’s proposed deal lacked clarity on who is in control of the algorithm, leaving the national security concerns “wide open.”
What The Author Thinks
China’s silence on the TikTok deal is more strategic than it appears. By not immediately endorsing the agreement, Beijing is maintaining its leverage and signaling that it will not be rushed into a final agreement on a matter of national importance. The “win-win” rhetoric from state-affiliated academics is likely a way to prepare the public for a compromise. The ultimate battle is not just about the sale of a company but about who controls the technology, data, and influence of a global social media platform. This quiet struggle between two superpowers over a single app demonstrates how deeply intertwined technology, commerce, and national security have become in the 21st century.
Featured image credit: ran liwen via Unsplash
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