Despite its vague wording, the new China-US framework deal on popular video-sharing app TikTok represents an important step in advancing bilateral talks and keeping ties warm ahead of any future meetings between the world’s two largest economies, according to analysts.
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And they added that Beijing could potentially try to leverage the TikTok deal by seeking tariff cuts or relief from hi-tech export controls.
Officials from both powers confirmed after negotiations in Madrid, Spain, on Sunday and Monday that they had agreed on a framework for resolving TikTok-related issues that date back to US President Donald Trump’s first term in office, five years ago.
Negotiators have not publicised the framework text over TikTok, but the Chinese side said it maintains the right to review and approve matters concerning technology exports, intellectual property rights, and licensing agreements related to TikTok, a popular Chinese app that has well over 100 million users in America.
Specific terms of the deal are expected to be unveiled after an anticipated phone call between Trump and President Xi Jinping on Friday.
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The deal may feature a “new ownership scheme” or allow US licensing of “proprietary technologies”, said Liang Yan, a professor of economics at Willamette University in the US.