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TikTok Deal Updated: Xi Jinping of China Secret Hope Game
Beijing Plays Hardball: Why Xi Is Using TikTok Deal as Leverage in U.S.-China Relations
Donald Trump’s much-hyped call with Chinese President Xi Jinping may have made headlines, but it didn’t close the TikTok chapter just yet. While Trump announced that he and Xi had “approved the TikTok deal” after their two-hour conversation, Beijing’s official response told a more cautious story: negotiations are far from over, and China intends to keep control of the app’s most valuable asset, its secretive recommendation algorithm.
At first glance, China’s willingness to entertain negotiations on TikTok looks like a sharp U-turn from its past resistance. For years, Beijing denounced Washington’s push to force a sale as “daylight robbery.” But now, the tone has shifted dramatically. State media is calling the new arrangement “mutually beneficial,” and Xi is framing the talks as grounded in “mutual respect, peaceful coexistence, and win-win cooperation.”
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So, what changed? Analysts say China isn’t caving to Trump’s pressure, it’s playing chess while the U.S. plays checkers. By dangling the possibility of a TikTok deal, Beijing is seizing the moment to extract broader concessions from Washington on issues it truly cares about: semiconductor export restrictions, investment barriers, and tariffs. As Brian Wong of the University of Hong Kong put it, “The Chinese state has appropriated the TikTok issue as a bargaining chip to secure more advantageous concessions in other policy domains.” In other words, TikTok isn’t the endgame, it’s the pawn being used to protect more valuable pieces on the board.
The Non-Negotiable Red Line
At the heart of this tug-of-war lies TikTok’s recommendation algorithm—the “secret sauce” that has helped the app reach 1.5 billion global users, including 170 million in the U.S. For years, Chinese officials have made it clear that this algorithm is a crown jewel of their tech industry, not for sale under any circumstances. Trey McArver of Trivium China explained it bluntly: “The key issue has always been the algorithm. Selling it is seen as unacceptable to Beijing because it would feel like the U.S. was bullying China and seizing its prized asset.”
This is where things get tricky. U.S. law passed in 2024 requires TikTok’s U.S. spinoff to exclude cooperation on its content recommendation system. That means any deal that leaves the algorithm under Beijing’s control could clash with Congress’ hardline mandate. The question now is whether Washington is willing to bend its own rules to keep the app alive, or whether Beijing will find a clever workaround, like licensing arrangements that preserve ownership while giving American overseers some operational control.
Trump’s Political Calculus
For Trump, keeping TikTok online isn’t just about policy, it’s about politics. He credits the platform with helping him win over younger voters during the last election cycle, and he knows banning it outright could alienate millions of Americans who see the app as more than just entertainment. It’s a digital community, a career launcher, and a cultural engine. This explains his 180-degree shift—from trying to ban TikTok during his first term to now fighting to keep it alive under American oversight. For Beijing, this political dependency is an opportunity. Xi knows Trump needs a deal, and that gives China leverage.
Experts like Yun Sun of the Stimson Center point out that Beijing’s flexibility shows how much the geopolitical backdrop has shifted. What was once a “matter of principle” has now become negotiable because China sees “bigger fishes to fry.” By softening its stance, Beijing positions itself as a pragmatic partner while quietly pressing for concessions that could reshape the future of U.S.-China trade and tech relations.
The fact that ByteDance’s app isn’t even available in China, where Douyin dominates the domestic market, makes TikTok a low-risk bargaining chip for Beijing. For Trump, though, it’s high stakes, both politically and diplomatically.
Despite Trump’s triumphant declaration, the TikTok deal is far from signed, sealed, and delivered. The unresolved issue of the algorithm looms large, and Beijing appears determined to keep it off the negotiating table. Meanwhile, China is already leveraging TikTok as a tool to push for relief on semiconductors, tariffs, and investment restrictions, areas with far greater long-term consequences than one viral video app.
In short, TikTok is less about viral dances and memes, and more about power, politics, and the art of negotiation between two global superpowers. The next chapter in this saga will reveal whether Washington is willing to compromise, or whether the algorithm will prove to be the deal breaker that keeps this standoff alive.
