MNI INTERVIEW: Tik-Tok Deal To Pave Way For Trump China Trip

The China-U.S. Tik-Tok deal reached in Spain is a “good-will gesture” from Beijing which should help to pave the way for a successful bilateral meeting between the two nations’ presidents at the November APEC summit, a former government adviser told MNI.

“This represents a goodwill gesture from China, as TikTok is strategically important for President Trump in engaging younger voters,” said Dr Henry Wang, founder and president of the Center for China and Globalization in Beijing, after China agreed that a Chinese algorithm can be licenced by the U.S. branch of Tik-Tok and President Donald Trump approved another extension of a deadline for its sale to American investors.

The development, expected to be confirmed in a call between Trump and President Xi Jinping on Friday, signals renewed cooperation and could also pave the way for a state visit to Beijing by the U.S. leader around the time of the APEC gathering, Wang said.

Beijing is likely to continue to pursue a comprehensive agreement with Washington before the Nov 10 negotiation deadline for trade talks, Wang said. If the U.S eliminates a 20% fentanyl-related tariff, China could pledge increased purchases of U.S. goods, particularly soybeans and other agricultural products and expand investment in U.S. industries, he said. (See MNI: Beijing Targets Trump Visit, Sees Limited Deal - Advisors)

Beijing may also consider leveraging rare earth exports in response to U.S. restrictions on advanced technologies such as semiconductors, he added.

The U.S. has capped any new tariffs on Chinese imports at a cumulative 30% – a 20% fentanyl-related duty and a 10% reciprocal tariff – following a 90-day extension to negotiations expiring Nov 10.

GREATER LEVERAGE

According to Wang, Beijing’s recent World War II commemorations and the Shanghai Cooperation Organisation summit were not intended as challenges to Washington and China’s trade stance remains unchanged. However, he said that Washington wields less economic leverage than in 2019, and noted Indian Prime Minister Narendra Modi’s first China visit in seven years. (See MNI INTERVIEW: China To Advocate For SCO Free Trade Zone)

China would be in favour of SCO enlargement to include observers such as Turkey and Malaysia, further strengthening the bloc’s economic weight, Wang said. The launch of an SCO Development Bank to finance infrastructure across member states reflected Beijing’s preference for “action over words,” he added.

Wang cautioned against framing the SCO as a geopolitical bloc, arguing the organisation was a platform for multilateral cooperation rather than alliances, as underscored by the UN General Assembly’s recent resolution to boost cooperation with the SCO.

While security remains a core pillar– highlighted by the rare joint appearance of Indian and Pakistani leaders in Tianjin following May’s brief armed clash – the leaders’ declaration pointed to an agenda increasingly focused on economic cooperation, Wang said. 

Beijing also unveiled an SCO energy cooperation platform, which Wang said was a logical step given the bloc’s abundant resources anchored by Russia, Iran, and Saudi Arabia, rather than a direct response to U.S. tariffs on India’s imports of Russian oil.

Looking ahead, the SCO may expand its first industrial cooperation zone, launched in Qingdao, to other members. But Wang cautioned that establishing a full SCO free trade area remains a long-term ambition given the complexity of negotiations.