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Trump, Xi to finalize TikTok deal. Ongoing US-China trade talks. Trade tensions impact US farmers.

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Trump, Xi Discuss TikTok Deal Amid Trade Tensions

Trump and Xi discuss a TikTok deal and trade. Both leaders aim to ease tensions and finalize an agreement on ownership and tariffs.

Trump, Xi Discuss TikTok Deal Amid Trade Tensions

Washington, Sep 19 (AP) - US President Donald Trump is in discussions with Chinese leader Xi Jinping on Friday to finalize an agreement that would allow the widely-used social media app TikTok to continue its operations in the United States.

The conversation between the leaders commenced around 8 am in Washington, as confirmed by a White House official and China's Xinhua News Agency.

This dialogue might provide insights into whether the two leaders could potentially meet face-to-face to conclude a definitive agreement aimed at resolving their trade dispute and bringing clarity to the future of US-China relations, which involves the world's two largest economies.

Following his return to the White House, this marks the second interaction between Trump and Xi after implementing significant tariffs on China, initiating a cycle of trade restrictions affecting the relationship between the two economic giants. Nevertheless, Trump, a Republican, has shown a willingness to negotiate trade agreements with Beijing, particularly for the social media platform facing a US ban unless its Chinese parent company divests its controlling interest.

Further Discussions on Trade Tensions - The leaders had previously engaged in talks in June to address tensions concerning China's export restrictions on rare earth elements, which are crucial in various products like smartphones and fighter jets.

“I’m speaking with President Xi, as you know, on Friday, regarding TikTok and also trade,” Trump said on Thursday. “And we’re nearing conclusions in all matters.” He described his relationship with China as “very good” but highlighted that the ongoing conflict in Ukraine could be resolved if European nations increased their tariffs on China. However, Trump did not specify if he intends to raise tariffs on China for its oil dealings with Moscow, as he has done with India.

The Chinese Embassy in Washington has not confirmed any forthcoming summit between the leaders, but spokesperson Liu Pengyu acknowledged that “heads-of-state diplomacy plays an irreplaceable role in providing strategic direction for China-US relations.”

Sun Yun, who heads the China program at the Stimson Center, a Washington-based think tank, anticipates a constructive dialogue.

“Both sides are keen on having the leadership summit materialize, although the outcomes hinge on the trade deal and achievable goals for both sides during the summit,” Sun remarked.

Following a US-China trade meeting earlier this week in Madrid, US Treasury Secretary Scott Bessent indicated that the two parties had reached a framework agreement on TikTok’s ownership, with expectations that Trump and Xi would finalize it on Friday.

Trump, who has credited TikTok with aiding his re-election, has extended the deadline multiple times for the app's separation from its Chinese parent company, ByteDance. This is a requisite for TikTok’s continued operation in the US under a law enacted last year addressing data privacy and national security concerns.

Trump asserted that TikTok “holds tremendous value” and that due to the US's control and approval requirements, “we hold that value.”

US officials have raised concerns regarding ByteDance's origins and ownership, emphasizing Chinese regulations that mandate Chinese companies to provide requested data to the government. Another issue is the proprietary algorithm that determines TikTok’s content delivery to users.

Chinese officials stated on Monday that a consensus had been reached on the authorization of “intellectual property rights,” including the algorithm, and both parties agreed on appointing a partner to manage US user data and content security.

Rep. Raja Krishnamoorthi, the leading Democrat on the House Select Committee on the Chinese Communist Party, emphasized that TikTok's data and algorithm must be “truly in American hands” to comply with the law.

Additional Trade Issues - The US and China have conducted four rounds of trade dialogues between May and September, with another anticipated in the upcoming weeks. Both nations have paused imposing high tariffs and have eased strict export controls, although numerous issues remain unresolved.

In the call, Trump is “likely aiming to project that the United States holds a favorable position in trade discussions,” noted Ali Wyne, a senior research and advocacy adviser on US-China issues at the International Crisis Group.

Meanwhile, Xi “may aim to emphasize China’s economic leverage and caution that any further progress in bilateral relations is contingent upon the relaxation of US tariffs, sanctions, and export restrictions,” Wyne suggested.

No agreements have been announced regarding technology export restrictions, Chinese procurement of US agricultural commodities, or fentanyl. The Trump administration has introduced an additional 20% tariff on Chinese products in response to allegations that Beijing has failed to stem the flow of chemicals used to produce opioids into the US.

The ongoing trade conflict with Beijing under Trump's second term has significantly impacted US farmers, depriving them of one of their key markets. From January to July, American agricultural exports to China declined by 53% compared to the same period in the previous year. This impact was even more pronounced for certain products; for instance, US sorghum sales to China saw a 97% decrease.

Josh Gackle, chairman of the American Soybean Association, expressed his keen interest in the outcome of Friday’s call due to China, the primary international buyer of US soybeans, halting purchases of this year’s fresh crop.

“There’s still a window of opportunity. It’s reassuring that the two countries continue to engage in dialogue,” Gackle noted. “There is a growing frustration at the farming community level concerning the lack of a finalized deal.” (AP) SCY SCY

(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)

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