Trump’s TikTok Stance Motivated China

Treasury Secretary Scott Bessent revealed on Tuesday that President Donald Trump’s firm stance on potentially shutting down TikTok in the U.S. proved to be a pivotal factor in reaching a framework agreement with China. Bessent emphasized that Trump’s willingness to let TikTok “go dark” underscored the administration’s commitment to national security above all else.

“President Trump made it clear that he would have been willing to let TikTok go dark, that we were not going to give up national security in favor of the deal,” Bessent stated during an interview on CNBC’s “Squawk Box.” This assertive approach, according to Bessent, effectively “turned the tide” in negotiations.

ByteDance, TikTok’s parent company, continues to face a looming deadline of September 17 to either divest its U.S. operations or risk a potential ban within the country. While the Trump administration has yet to formally extend this deadline, U.S. Trade Representative Jamieson Greer indicated on Monday that additional time might be necessary to finalize and execute the agreement.

According to Bessent, the commercial terms of the deal between ByteDance and prospective investors have been essentially agreed upon since March or April. However, negotiations reportedly stalled following President Trump’s announcement of significant tariffs on April 2, introducing a new layer of complexity to the already sensitive discussions.

President Trump’s imposition of tariffs, coupled with trade threats and restrictions on chip exports, has undoubtedly strained relations between the world’s two largest economies. However, the emerging TikTok deal could potentially signal a turning point, with both President Trump and Chinese President Xi Jinping anticipated to engage in discussions later this week to finalize the agreement. The success of this agreement hinges on addressing both national security concerns and economic interests.

“We were able to reach a series of agreements, mostly for things we will not be doing in the future that have no effect on our national security,” Bessent clarified on Tuesday. This suggests a focus on curtailing potentially risky activities rather than imposing sweeping restrictions.

While the administration has taken a hard line on TikTok’s security, the White House launched its own TikTok account last month, amassing close to 1 million followers, highlighting the platform’s reach. Furthermore, Oracle is already deeply enmeshed within TikTok’s web infrastructure, playing a paramount role in hosting sensitive user data. This existing link further complicates the dynamics of any prospective deal. The negotiations raise complex questions about tech sovereignty, data security, and the ongoing competition for technological leadership.