U.S.-China Agreement on TikTok Sale, but Trade Negotiations Still Mired in Disputes

Fourth High-Level U.S.-China Trade Talks Concluded
Agreement on TikTok Sale, Trump’s Potential Visit to China Discussed
Fentanyl and Russian Crude Oil Imports Among Outstanding Issues

The United States and China reached a de facto agreement on the sale of TikTok’s U.S. operations during recent high-level trade negotiations. However, contentious issues such as imports of Russian crude oil, fentanyl trafficking, and restrictions on advanced semiconductor exports remain unresolved, continuing to obstruct progress. With political dynamics in both countries compounding the complexity, finalizing a comprehensive accord is expected to prove arduous.

Trump: “Trade Negotiations Are Progressing Well”

On September 16 (local time), U.S. Treasury Secretary Scott Bessent said in a CNBC interview regarding trade talks held in Madrid that “each round of meetings is becoming more productive” and that “China now seems to believe an agreement is possible.” President Donald Trump also struck an optimistic note, writing on Truth Social that “the large-scale trade talks between the U.S. and China in Europe are going very well” and that “they will soon be concluded.”

Earlier, on April 2, President Trump announced high tariffs on global trading partners under the “Day of Liberation” initiative, with duties of up to 145% targeting China. Subsequent negotiations led to a suspension of tariffs, originally set to expire on August 12, which was then extended again until November 10. The September 14–15 meeting marked the fourth round of high-level negotiations since Trump’s tariff policy was introduced, with discussions centered on tariffs, the TikTok sale, and a potential presidential visit to China.

U.S.-Led Board Structure in TikTok Sale

On the TikTok matter, Trump said that “an agreement has been reached regarding a certain company that American youth desperately wanted,” adding that “they will be very pleased.” He emphasized that he would speak with Chinese President Xi Jinping on September 19 and that “bilateral relations remain very strong.” Secretary Bessent noted that once President Trump demonstrated his willingness to shut down the service, China shifted toward a deal, suggesting that both sides had effectively agreed.

The TikTok issue has been one of the most contentious items on the agenda. Last year, the U.S. Congress passed the “Protecting Americans from Apps Controlled by Foreign Adversaries Act,” commonly known as the TikTok Ban Act, targeting ByteDance. The law mandates that unless ByteDance divests TikTok’s U.S. operations, the service would be banned. Although the deadline for the sale was set for September 17, President Trump signed an executive order on September 16 extending it until December 16.

Given that a final agreement appears imminent, this extension is likely to be the last. The Wall Street Journal reported that under the deal, U.S. investors would hold 80% of shares, with Chinese stakeholders retaining the remainder. The new U.S. entity’s board would be primarily American, including one government-appointed member, while Oracle would manage U.S. user data from its Texas data center.

Comprehensive Settlement Remains Elusive

Despite progress on TikTok, major obstacles persist in U.S.-China relations. One pressing issue is Chinese imports of Russian crude oil. On September 12, President Trump sent an official letter to NATO member states urging them to halt purchases of Russian oil and impose tariffs of 50–100% on importing countries, including China. Yet Beijing regards Russian oil as a vital component of energy security, leaving little room for concessions.

The U.S. is also pressing China to stem the illicit flow of fentanyl. Washington has long accused Chinese firms of supplying precursor chemicals to Mexico, worsening America’s opioid crisis. Beijing, however, continues to deny responsibility, arguing that U.S. domestic demand is the root cause. Meanwhile, delays in China’s resumption of rare earth exports, along with U.S. export controls targeting AI chips, have further complicated negotiations. Most observers agree the talks will remain fraught.

Experts cite “differences in political calculus” as the principal reason for the impasse. Facing midterm elections next year, President Trump urgently needs tangible results, particularly tariff relief and improved access to Chinese markets to shore up support among his manufacturing and agricultural base. China, by contrast, despite economic headwinds, maintains the belief that “time is on our side.” Bloomberg noted that with disparate issues entangled, a comprehensive deal is virtually impossible, and Beijing appears intent on leveraging U.S. domestic political pressure by drawing out the talks.