As US President Donald Trump signed an executive order on Thursday to bring the widely watched TikTok dispute closer to a resolution, the move fuelled expectations of broader US-China trade deals when their leaders are expected to meet next month.
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The proposed divestiture, meanwhile, has also raised questions about the fate of Chinese and American companies investing and operating in each other’s markets.
In the latest development in the saga involving the short-video app, Trump wrote in the Thursday order that divestiture of the influential platform under Chinese firm ByteDance would allow American users to continue using it, while also protecting national security.
That followed a framework deal reached in Madrid earlier this month, and a “go-ahead” from President Xi Jinping in their call last week, Trump said. Under the proposed terms of the deal, TikTok would operate under US ownership, led by investors such as Oracle, with ByteDance retaining a 20 per cent stake.
At a news conference on Friday, China’s foreign ministry urged Washington to provide a level playing field for Chinese investors following the TikTok deal.
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“The Chinese government respects the wishes of enterprises and welcomes them to conduct business negotiations based on market rules, reaching solutions that comply with Chinese laws and balance interests,” spokesman Guo Jiakun said when asked to comment on the deal.