Donald Trump and Xi Jinping recently held a phone conversation aimed at addressing TikTok's operations in the United States and easing ongoing trade tensions between the two nations. Chinese state media reported the call, but did not disclose specific details. The White House has not yet commented on the discussion.

This dialogue comes as both leaders consider a potential in-person meeting during the Asia-Pacific Economic Cooperation (APEC) summit, scheduled for October 30 to November 1 in South Korea. A key focus of their talks is a deal that would transfer TikTok's U.S. assets from its Chinese parent company, ByteDance, to American owners. Congress has mandated that TikTok must cease operations in the U.S. by January 2025 unless its assets are sold.

While Trump has not enforced this law, he is reportedly seeking a new owner for the app. He has expressed concerns that banning TikTok could alienate its large user base and disrupt political communication. "I like TikTok; it helped get me elected," Trump stated during a press conference. He emphasized the app's significant value, noting, "The United States has that value in its hand because we're the ones that have to approve it."

Despite the ongoing negotiations, several questions remain unanswered. The exact ownership structure of the new entity is unclear, including how much control ByteDance will retain and whether Congress will approve the arrangement. Sources familiar with the negotiations indicated that the U.S. version of TikTok may still utilize ByteDance's algorithm, raising concerns among lawmakers about potential Chinese surveillance and influence operations.

China has denied any national security threat posed by TikTok. Trump mentioned, "We're pretty close to a deal," referring to broader trade discussions. He suggested that an extension of current trade terms with China might be possible, which he described as favorable.

Key issues in the trade discussions include competition in semiconductors and advanced technologies. The U.S. is pushing for increased Chinese purchases of American soybeans and Boeing aircraft. Additionally, the U.S. is demanding that China take action against the export of fentanyl-related chemicals, which have contributed to a rise in overdose deaths in the U.S. China has accused the U.S. of misrepresenting the situation.

Since taking office in January, Trump has significantly increased tariffs on imports, particularly targeting China's export-driven economy. This has led to retaliatory measures from China, resulting in tariff rates soaring to triple-digit percentages in April. Although there have been some limited agreements since May that temporarily eased the trade conflict, significant issues remain unresolved.

Tariffs have become a cornerstone of Trump's economic strategy, which he claims will restore manufacturing jobs and address trade imbalances. Despite these tariffs, China continues to be the U.S.'s third-largest trading partner and the source of its largest trade deficit in goods.

Trump has also threatened additional tariffs on Chinese exports related to the country's purchases of Russian oil, although he has not yet implemented these measures. Meanwhile, regional tensions over Taiwan and the South China Sea continue to grow, presenting additional challenges in U.S.-China relations.

In a gesture of goodwill before the phone call, China allowed Wells Fargo banker Chenyue Mao to leave the country after he had been unable to return to the U.S. for several months.