Editorial | US-China pragmatism on display in proposed TikTok deal

Pragmatism prevails in the proposed TikTok deal between the United States and China, with US President Donald Trump declaring it meets his country’s national security requirements while allowing tens of millions of Americans to continue using the Chinese short-video app. Under the proposed terms of the deal, yet to be confirmed by Beijing, American investors will control around 80 per cent of the app in the US, leaving owner ByteDance and its affiliates with less than 20 per cent. This followed a framework deal reached in Madrid earlier this month and a “go-ahead” from President Xi Jinping in their call last week, Trump said.

China may be eyeing what it gets in return, with Beijing and Washington engaged in prolonged trade negotiations. High on the agenda are the US lifting export controls on hi-tech products and China buying Boeing planes and soybeans.

The proposed resolution also raises the prospect of bilateral trade deals when top leaders meet on the sidelines of the coming Asia-Pacific Economic Cooperation (Apec) summit. On the other hand, the proposed disinvestment of ByteDance also raises questions for Chinese and American companies investing and operating in each other’s markets.

The reported TikTok deal reinforces the principle that any expansion or development must be compliant with American law. By the same token, American companies operating in China should also be compliant with Chinese laws. That is what the Chinese leadership means by equal and mutual respect. By adhering to this approach, China does no harm to its bargaining position, in terms of leverage in tariff and trade negotiations, and ultimately the core issue of Taiwan.