Leaders Donald Trump and Xi Jinping are scheduled to hold a phone call on Friday that may finalise a framework deal governing TikTok’s operations in the United States, even as tensions over tariffs and semiconductors sharpen.
Senior U. S. and Chinese officials have indicated agreement on a deal which would transfer ownership or control of TikTok’s U. S. assets to American entities, meeting U. S. national security concerns, while Beijing retains certain “Chinese characteristics” linked to algorithm licensing or IP oversight. The transfer terms have yet to be fully disclosed, and Trump’s administration has extended the legal deadline for divestment to mid-December to allow negotiations to conclude.
Tariffs remain a potent issue: U. S. import levies on Chinese goods and China’s counter-tariffs are weighing on businesses on both sides. Washington has pushed for further export controls on advanced technology, especially chips, while Beijing has launched its own antimonopoly investigations, particularly into Nvidia following its acquisition of Mellanox, and banned domestic firms from buying certain Nvidia chips.
Beijing has dropped its major antitrust probe into Google, a move that signals a recalibration of its regulatory posture. Meanwhile, Russia-China-U. S. dynamics in the semiconductor arena are now under heightened scrutiny as trade policy becomes increasingly entwined with digital sovereignty and national security goals.
Negotiators in Madrid played a central role this week by shaping the basic terms of the TikTok deal. Treasury Secretary Scott Bessent has stated that U. S. priorities centre on ensuring that user data and algorithmic operations fall firmly under U. S. jurisdiction. Chinese officials, for their part, emphasise protection of their IP and control over algorithm licensing as part of their soft power strategy.
In parallel, China’s Ministry of Commerce has initiated anti-dumping proceedings targeting analog integrated circuits made by U. S. companies. Industry regulators in China also initiated anti-discrimination investigations in response to U. S. policies aimed at restricting chip imports and technology collaborations.
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