Trump, Xi edge toward a TikTok split to keep the app alive in the US

President Trump and China’s Xi Jinping spoke Friday morning — a call both sides teed up as the moment to lock in a framework that would keep TikTok from going dark in the United States by prying it loose from Beijing-based ByteDance.

Trump, who’s already extended TikTok’s sell-or-ban deadline four times, has said he has a deal “in hand” and would use the Xi call to “confirm everything.” The law driving all this requires TikTok to end Chinese control or face a US ban, citing national-security worries over data access and content manipulation.

What the deal likely looks like

• New US-controlled TikTok: ByteDance would spin off US operations into a fresh company with a majority of American investors. Names floated for months include Oracle and big VC/PE firms, with Chinese owners keeping a minority stake.
• Algorithm: license, don’t sell? Because China restricts exporting core tech, negotiators are circling a licensing model — a US TikTok re-creating its recommendation engine using technology rented from ByteDance. Think “use rights with terms,” not a clean handoff.
• Security sweeteners: Guardrails under discussion include US-only data storage, US-based engineering for the American app, and controls on software updates — all meant to wall off US users from China-based access.

Trump has also hinted the US will collect a “tremendous fee” for brokering the arrangement — another sign of the White House inserting itself directly into corporate dealmaking.

Beijing once vowed to block an algorithm sale and even updated export rules to make it harder. Now officials are signaling room for a compromise, saying this “consensus serves the interests of both sides” and referencing agreements on using intellectual property. In plain English: license the secret sauce, keep TikTok in the US, and preserve some Chinese value.

The sticking points

• Who really controls the feed? A license could still let ByteDance influence updates or see internal metrics. That’s a red flag for lawmakers in both parties who insist the data and the algorithm must be “truly in American hands.”
• Enforcement mechanics: How do you prevent backdoor access or remote code changes? Who audits the code and data flows? What happens during emergency patches?
• Regulatory sign-offs: Any final deal needs buy-in from US national-security reviewers and Chinese regulators — and possibly Congress — plus ByteDance’s board.

Trump credited TikTok with helping him with younger voters in 2024, which complicates the optics of a hard ban. He’s pushed the deadline to mid-December as the two sides close in. The Xi call also ranged beyond TikTok — tariffs, fentanyl, and a possible leader-level meeting were all on the table — but the app remains the most visible pressure point in a tense, tariff-heavy US–China reset.

TikTok’s “For You” engine is its moat: a laser-targeted recommendation system that learns what keeps you watching — and then gives you more of it. That’s exactly what US officials worry could be weaponized for influence or data harvesting. TikTok denies sharing data with Chinese authorities, but courts and agencies have repeatedly noted that Chinese law can compel cooperation.

What to watch next

• The fine print: Expect specifics on the license terms, code audit rights, and the location and control of engineering teams.
• Board and governance: A majority-US board has been floated, potentially with a government-approved director.
• Deadlines and extensions: Trump’s latest extension runs to mid-December. If this framework holds, it could be the last one.

Washington and Beijing appear ready to trade a clean break for a controlled separation. If the licensing model truly walls off US data and control, TikTok survives in America. If not, expect the ban threat to snap back fast.

With input from the New York Times, CBS News, NBC News, and CNN.