By Quasa Insights | October 27, 2025
In the ever-unpredictable world of U.S.-China relations, the spotlight this week falls squarely on TikTok - the short-video juggernaut that's become a flashpoint for national security, tech sovereignty, and global trade.
As President Donald Trump embarks on an Asian tour culminating in a face-to-face meeting with Chinese President Xi Jinping on Thursday in Busan, South Korea, Treasury Secretary Scott Bessent has dropped a bombshell: a "final deal" on TikTok's U.S. operations is ready for the leaders' signatures.
But as with anything involving Trump's deal-making flair, skepticism abounds. Is this the "great deal" that saves the app for 170 million American users, or just another chapter in the saga of diplomatic brinkmanship?
A Framework Forged in Fire: From Ban Threats to Boardroom Handshakes
The TikTok saga dates back to Trump's first term, when he branded the app a "national security threat" over fears of Chinese data harvesting and algorithmic influence. Legislation signed by President Joe Biden in 2024 mandated ByteDance, TikTok's Beijing-based parent, to divest its U.S. assets or face a ban - a deadline repeatedly extended under Trump 2.0. Fast-forward to September 2025: After tense talks in Madrid, Bessent announced a "framework" agreement, with Trump and Xi set to finalize details via phone. Now, with Trump fresh off stops in Malaysia and Japan, the pieces appear to be falling into place.
Bessent, speaking on CBS's Face the Nation Sunday, struck an optimistic tone: "We reached a final deal on TikTok... all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea." The deal would transfer control of TikTok's U.S. operations - including its prized algorithm and user data - to a consortium of American investors, ensuring ByteDance's stake drops below 20%.
Key players reportedly include Oracle (for cloud and data security), Fox Corp (media muscle from Rupert Murdoch's empire), venture capital heavyweight Andreessen Horowitz, and private equity firm Silver Lake Management. Trump himself has name-dropped allies like Oracle co-founder Larry Ellison and Dell's Michael Dell, framing it as a win for American innovation.
Yet, whispers online highlight lingering doubts. One user quipped, "TikTok deal's in the bag... Trump and Xi are ready to do the handshake dance in Korea," while privacy advocates warn that ByteDance veterans could still pull strings behind the scenes, raising red flags on data protection. Oracle's stock is already buzzing, with traders eyeing Thursday's summit as a potential catalyst.
Beyond the App: TikTok as the Tip of a Geopolitical Iceberg
If inked, this agreement won't just rescue TikTok from oblivion - it could unlock a broader U.S.-China thaw. Trump, ever the showman, hinted Monday that Washington and Beijing are "poised to come away with" a comprehensive trade pact, averting his threatened 100% tariffs on Chinese goods.
Bessent echoed this, noting the TikTok resolution as a cornerstone of talks covering fentanyl flows, port fees, and - crucially - China's stranglehold on rare earth metals.
Rare earths, those obscure elements powering everything from EV batteries to fighter jets, are China's ace in the hole: Beijing controls 70% of global mining and 90% of refining. In April 2025, amid escalating tariffs, China slapped export curbs on seven key rare earths, jolting U.S. supply chains and prompting Trump's tariff retort.
Now, sources suggest a one-year deferral of those controls in exchange for TikTok concessions and soybean trade boosts - a quiet quid pro quo that could stabilize prices for American manufacturers.
Analysts see TikTok as the "most important public element" of a larger bargain, masking deeper pacts on tech exports and IP theft. "This isn't just about cat videos," one post noted dryly. "It's America taking the lead again." The U.S. has hedged its bets with recent deals for rare earths from Thailand, Malaysia, and Australia, but normalization with China remains the golden ticket.
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The Trump Discount: Optimism Tempered by History
Trump's bombast demands a reality check - his administration's promises have a habit of evolving (or evaporating). Remember the "Phase One" trade deal of 2020? It fizzled amid COVID and tariffs. Critics, including privacy hawks, argue the TikTok handoff might not fully sever Chinese ties, with ByteDance execs potentially retaining sway over operations. And while Bessent insists China's greenlit the sale, Beijing's silence leaves room for last-minute snags - perhaps over algorithm access or antitrust hurdles.
Still, the momentum is palpable. As Trump wheels into Busan for the APEC summit, the world watches. A signed deal could herald detente, boosting markets from Silicon Valley to Shenzhen. Failure? More tariffs, a TikTok blackout, and renewed rare earth jitters. In Trump's words, it's time for a "big, beautiful" resolution. Whether it materializes remains the question of the week.
Quasa Insights is an independent publication blending AI analysis with real-time reporting. Follow for updates as Thursday unfolds.
