NextFin news, WASHINGTON — On Friday, September 19, 2025, U.S. President Donald Trump and Chinese President Xi Jinping engaged in a high-level phone call focused on finalizing a deal to allow the popular social media app TikTok to continue operating in the United States.
The call, which began around 8 a.m. Washington time, also served as a platform for the two leaders to discuss broader trade relations between the world's two largest economies. The discussion may provide insight into whether the leaders will meet in person soon to negotiate a final agreement aimed at ending the ongoing trade war.
The TikTok deal follows a framework agreement reached earlier this week during a U.S.-China trade meeting in Madrid. U.S. Treasury Secretary Scott Bessent confirmed that the framework on TikTok's ownership was agreed upon, with Trump and Xi expected to finalize the details during this call.
President Trump has repeatedly extended deadlines for TikTok to divest from its Chinese parent company, ByteDance, citing national security and data privacy concerns. The U.S. government requires that TikTok's U.S. operations be separated from ByteDance to continue functioning in the American market.
Trump stated on Thursday, "I'm speaking with President Xi, as you know, on Friday, having to do with TikTok and also trade. And we're very close to deals on all of it." He also noted that TikTok "has tremendous value" and emphasized that the U.S. holds approval authority over the deal.
Chinese officials have indicated that a consensus was reached on intellectual property rights, including TikTok's proprietary algorithm, and agreed on entrusting a partner with managing U.S. user data and content security.
Trade tensions between the U.S. and China have eased somewhat, but significant issues remain unresolved, including tariffs, technology export controls, and agricultural purchases. The Trump administration has maintained tariffs on Chinese goods linked to allegations of Beijing's failure to curb the flow of fentanyl precursors to the U.S.
Market reactions ahead of the call were cautious, with U.S. stock futures holding steady near record highs as investors awaited outcomes from the Trump-Xi discussion.
Experts suggest that Trump will likely aim to portray the U.S. as having leverage in trade negotiations, while Xi may emphasize China's economic influence and the necessity of easing U.S. tariffs and sanctions for progress in bilateral relations.
The call marks the second direct conversation between the two leaders since Trump resumed office and escalated tariffs on China, which triggered reciprocal trade restrictions and strained economic ties.
U.S. farm groups, heavily impacted by the trade war, are closely monitoring the talks. American farm exports to China have dropped significantly, with some commodities like sorghum experiencing a 97% decline in sales.
Overall, the call represents a critical moment in U.S.-China relations, with potential implications for technology regulation, trade policy, and geopolitical dynamics.
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