• A potential framework for TikTok's U.S. operations is a central topic, though key structural details remain unresolved.
  • The call's outcome could determine the extension of a U.S.-China trade truce, with Trump signaling talks could still break down.
  • The high-stakes engagement marks the leaders' first direct contact since June and has significant implications for tech sector investments and cross-border data rules.

Chinese President Xi Jinping and former U.S. President Donald Trump held a phone call on Thursday, their first direct engagement in months, with negotiations over the fate of TikTok's U.S. operations and the broader trade relationship dominating the discussion, according to Chinese state media.

The call, which took place on September 19, focused on a possible framework agreement for the popular video app after months of negotiations. According to people familiar with the matter, a potential deal involves a consortium of U.S. investors, but critical structural elements remain in flux. It is still unclear whether an agreement would necessitate a full sale, a complex licensing arrangement, or the contentious divestment of the app's core algorithms.

Trump has indicated that the United States may be willing to extend its current trade truce with China, but he has also publicly cautioned that no final deal has been struck and that discussions could still falter. The former president's statements suggest the call was a pivotal moment in ongoing efforts to restructure a relationship fraught with national security concerns and economic competition.

The engagement comes amid intense U.S. scrutiny of Chinese technology firms, driven by bipartisan concerns over data security and algorithmic control. Pressure from U.S. regulators for TikTok's stateside operations to be controlled by American entities reflects a broader global trend toward asserting digital sovereignty. A spokesperson for Trump’s team did not immediately respond to a request for comment on the specifics of the discussion.

For the millions of American TikTok users and the businesses that rely on the platform for marketing, the outcome of these talks will directly impact data privacy standards and the app's very availability. The negotiations also carry weight for financial markets, where any sign of easing trade tensions could calm investor nerves, while a breakdown would likely inject fresh volatility.

The call builds upon a series of high-level negotiations between U.S. and Chinese officials that have taken place in European capitals throughout 2025, aimed at developing a sustainable framework for managing technology and trade disputes. The fate of TikTok has been a recurring flashpoint, echoing Trump's previous threats during his presidency to ban the app unless it was sold to a U.S. owner.

While the dialogue represents a significant step, experts caution that the path forward remains precarious. The structure and implementation of any potential agreement will be critical in determining not only TikTok's future but also the trajectory of U.S.-China relations for the foreseeable future.