WORLD NEWS

WASHINGTON/BEIJING – US President Donald Trump and Chinese President Xi Jinping held a highly anticipated phone call on Friday, their second direct contact since Trump began his second term in January. The conversation revolved around two major issues straining ties between the world’s two largest economies: TikTok and tariffs.
TikTok Deal on the Horizon
Ahead of the talks, Trump told Fox News that both leaders would discuss “TikTok and also trade,” adding, “We’re very close to deals on all of it. And my relationship with China is very good.”
The US president has repeatedly delayed imposing a ban on TikTok, originally introduced under his predecessor Joe Biden, citing national security concerns over its Chinese parent company, ByteDance. Trump said he hoped to “finalise something on TikTok” soon, hinting that the app’s US business would be “owned by all American investors, and very rich people and companies.”
Trump also credited TikTok with boosting his popularity among younger voters during the 2024 election campaign.
Reports suggest that Oracle, along with investment funds Silver Lake and Andreessen Horowitz, could lead a consortium to control TikTok’s US operations.
Tariff Tensions
The leaders also sought common ground on tariffs, which have rattled global markets. Earlier this year, Washington and Beijing escalated a months-long trade war, slapping steep duties on each other’s goods — the US imposing 30% tariffs on Chinese imports, while Beijing retaliated with 10% levies on American products.
A temporary deal reduced some tariffs but is set to expire in November, putting pressure on both sides to negotiate a compromise.
Geopolitical Undercurrents
The phone call followed Xi’s recent summit with Russian and Indian leaders in Beijing, where North Korean leader Kim Jong Un attended a military parade as an observer. Trump responded sharply on social media, writing to Xi: “Please give my warmest regards to (Russian President) Vladimir Putin and Kim Jong Un as you conspire against the United States of America.”
Meanwhile, Trump has penalised India with tariffs over oil purchases from Moscow and urged European nations to sanction China for buying Russian oil, even though Washington itself has not imposed such measures on Beijing.
“If they did that on China, I think the war (in Ukraine) would maybe end,” Trump told Fox News.
Looking Ahead
While no travel plans have been confirmed, Trump said Xi had invited him to visit China, and he had extended a similar invitation to the Chinese leader. Analysts believe Beijing may use Trump’s fondness for grand diplomatic receptions to strengthen its leverage in negotiations.
For now, the TikTok deal and looming tariff deadlines remain the most pressing issues in the uneasy but crucial US-China relationship.