Trump and Xi to Seal Landmark TikTok Deal at Korea Summit
The United States and China have wrapped up negotiations on the transfer of the American version of TikTok to new ownership, Treasury Secretary Scott Bessent confirmed on Sunday. President Trump and Chinese leader Xi Jinping are set to finalize the agreement during their face-to-face meeting in Busan, South Korea, on Thursday — their first encounter since 2019.
“We reached a final deal on TikTok,” Bessent told CBS News’ Face the Nation. “We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.”
Trump had already laid the groundwork for the transaction last month with an executive order that created the legal path for TikTok’s transfer. At the time, negotiators were still working through several technical and commercial sticking points before reaching Sunday’s breakthrough.
Bessent declined to disclose specifics about the final structure of the agreement, saying he wasn’t directly involved in its business arrangements. “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days,” he said.
According to the framework introduced under Trump’s executive order, ByteDance — TikTok’s Chinese parent company — will retain less than 20% ownership of the platform. The remaining 80% will be held by “certain investors,” satisfying U.S. law requiring TikTok’s separation from Chinese Communist Party–linked control for national security reasons. That law was passed by Congress and signed last year by President Joe Biden.
Trump has repeatedly extended deadlines for TikTok’s divestment, allowing time for talks to progress. Had ByteDance refused to part with its majority stake, the app would have faced removal from U.S. app stores, effectively cutting it off from millions of users nationwide.
The president previously revealed that several high-profile business figures — including Oracle co-founder Larry Ellison, tech billionaire Michael Dell, and News Corp’s Rupert Murdoch — would be involved in the restructured TikTok ownership plan. Whether their roles changed during the final stages of negotiation remains unclear.
Bessent also hinted that Trump is now backing away from the steep 155% tariff rate he threatened to impose on China last week amid tensions over Beijing’s rare earth export policies. That tariff, which was slated to take effect on November 1, would have sharply increased the existing 55% rate on most Chinese imports.
“It would be an extra 100% from where we are now, and I believe that that is effectively off the table,” Bessent said. “I’m not going to get ahead of the two leaders who will be meeting in Korea on Thursday, but I can tell you we had a very good two days.” He added, “So I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
As for U.S. agriculture, Bessent offered a cryptic but optimistic hint about the deal’s benefits. “Soybean farmers are going to be extremely happy with this deal for this year and for the coming years,” he said, without elaborating.
Critics have previously accused the administration of undercutting American soybean growers through a $20 billion currency swap with Argentina — a move they argued would strengthen Buenos Aires’ economy and allow it to sell more soybeans to China. But Bessent’s comments suggest the new trade framework could bring a major boost to American farmers as part of the broader U.S.-China accord.
{Matzav.com}
