China signals openness to TikTok deal to stay in the U.S.

Photo Credit: Ministry of Foreign Affairs for the PRC (Mao Ning)

With TikTok service restored in the United States now that President Trump is in office, China has signaled it may be willing to strike an ownership deal. Here’s the latest.

A press conference held by China’s Ministry of Foreign Affairs addressed several questions from reporters. Spokesperson Mao Ning answered one interesting question presented by a Reuters reporter asking if China would be open to striking a new deal with Trump.

“Trump has said that he wants to cut a deal that will see the US have a 50% ownership in a joint venture. Is China open to a deal with Trump and how might such a deal look like?” the Reuters reporter asks the PRC’s spokesperson.

“TikTok has operated in the US for years and has been very popular with American users. It has played a positive role in boosting US employment and consumption. We hope the US will earnestly listen to the voice of reason and provide an open, fair, just, and non-discriminatory business environment for market entities from all countries,” replied Mao Ning.

“When it comes to actions such as the operation and acquisition of businesses, we believe they should be independently decided by companies in accordance with market principles. If it involves Chinese companies, China’s laws and regulations should be observed,” she continued.

That’s a reversal of China’s previous position in which the Chinese government stated it was directly opposed and would block a forced sale of TikTok. TikTok’s founder Zhang Yiming spoke with Elon Musk last year after it became apparent that Congress would pass a TikTok ban for the then President Biden to sign into law. The law passed in April 2024 and went into effect on Saturday night, though service for TikTok was restored on Sunday morning.

What’s important to note in the PRC’s spokesperson’s statement is that any deal struck should comply with Chinese regulations. Back in 2020 when talks of a TikTok deal were nascent under then President Trump, China restricted the export of artificial intelligence technologies that include ‘personalized content recommendation.’ That would directly ban TikTok’s ‘Discover’ algorithm from being exported in any US deal that President Trump may strike.