Trump and Xi Discuss TikTok Deal, Trade, and Potential Meeting

TikTok Deal Negotiations

• 📞 President Trump and Chinese President Xi Jinping held a 2-hour phone call, with the TikTok deal being the primary focus.
• 🤝 A potential deal involves a consortium, including Oracle, Silverlake, and Andreessen Horowitz, owning an 80% stake in the US version of TikTok.
• 🇨🇳 The Chinese would retain a nearly 20% stake, and the US government might receive a board seat on the revised American TikTok.
• ❓ A key unresolved issue is whether the US version of TikTok will continue to use the Chinese algorithm, which is a central national security concern.

Algorithm and National Security Concerns

• 🔒 The national security concern revolves around the potential for the Chinese government to manipulate TikTok and influence US public opinion.
• 🔍 There are significant questions about the extent to which the US side can examine the algorithm to ensure no Chinese government influence, backdoors, or propaganda pushes.
• ⚖️ A major question is whether licensing the existing algorithm, with billions of lines of code, violates laws passed by Congress and signed by the president.

Licensing Deal Structure

• 💡 Expectations are for a licensing deal where the Chinese algorithm would be licensed, with a portion of revenues going back to ByteDance.
• 💰 ByteDance shareholders, including US-based firms like General Atlantic, are expected to provide new money, potentially representing up to 30% of the stake.
• 🚀 The remaining 50% new money would complete the 80% stake for the US consortium.

Potential In-Person Meeting

• 🌏 The call might also provide clarity on whether Trump and Xi will meet in person this fall, with speculation of a meeting in Asia.
• 🗣️ The president is expected to post an update on Truth Social once the call concludes.