Good Morning: TikTok, China, and a Shift in Power

The standoff over TikTok appears to be nearing an end — but who really won? At first glance, China’s decision to let go of the app’s U.S. operations looks like a concession. In reality, it may be a calculated move to gain leverage in far bigger negotiations.

Why TikTok Became Negotiating Bait

When news broke that TikTok would sell its American operations, many in Washington celebrated. After all, Beijing had resisted U.S. pressure for years, denouncing demands to divest as discriminatory.

But China’s agreement doesn’t necessarily reflect weakness. Instead, it shows tactical thinking. TikTok has become a relatively low-value bargaining chip compared to issues Beijing prioritizes: tariffs, advanced technology, and Taiwan.

If the sale goes through, the U.S. may get a symbolic win — but China secures space to negotiate on matters that truly affect its long-term strategy.

Trump, TikTok, and Politics

During his first term, Donald Trump pushed to ban TikTok on national security grounds, citing concerns over data security and disinformation. In 2024, Congress passed a law requiring ByteDance, TikTok’s parent company, to divest its U.S. operations or face a ban.

Yet Trump complicated matters. By the time he campaigned for re-election, TikTok had become a valuable tool for reaching younger voters. One of his biggest financial backers was also heavily invested in ByteDance. He delayed enforcement repeatedly through executive orders while simultaneously escalating a tariff war with China.

Now, as negotiations advance, TikTok has become a card both sides can play: Trump gains a political win by preserving the app he credits with boosting his election prospects, and Beijing earns goodwill to press its agenda in trade and tech.

What China Wants

By giving up TikTok at this moment, Beijing aims to:

• Push for relief from U.S. tariffs.

• Loosen export restrictions on advanced semiconductors.

• Reduce U.S. support for Taiwan.

• Secure a high-profile meeting between Xi Jinping and Trump, ideally on Chinese soil.

China sees Trump as transactional — someone who values the deal itself as much as its substance. This creates an opening to extract meaningful concessions.

What’s Next for TikTok

If finalized, the deal would place TikTok’s U.S. operations under American ownership. Trump has floated Fox Corporation as a potential investor, though concerns remain about how thoroughly this would address national security risks.

The bigger question is what the U.S. may have to give up in exchange. Will concessions on AI technology or Taiwan outweigh the symbolic victory of “winning” TikTok?

Recognition of Palestinian Statehood

Meanwhile, on the global stage, Britain, Canada, Australia, and Portugal announced they are formally recognizing Palestinian statehood. The coordinated move increases pressure on Israel and deepens its diplomatic isolation but is unlikely to shift realities on the ground.

At the U.N., France is rallying more than 140 countries to back recognition as part of a two-state solution once the Gaza war ends. But without support from Israel or the U.S., the plan faces steep challenges.