Trump–Xi Meeting in South Korea Revives Hopes for TikTok Deal

Donald Trump said he will meet Chinese President Xi Jinping next month at the APEC Summit in South Korea, a development that follows a phone call where both sides pointed to progress on TikTok’s U.S. operations. While Trump framed the deal as effectively done, Beijing offered a more cautious readout. For markets, the story reverberates through U.S. social media platforms such as Meta Platforms (Zorrox: FACEBOOK), which stand to gain if TikTok faces tighter restrictions.

A Call With Different Messages

Trump told reporters that he and Xi had “approved” a framework allowing TikTok to keep operating in the U.S. under new ownership terms. He linked the outcome to last year’s legislation that forced a divestment deadline or outright ban. Beijing’s statement struck a different tone, avoiding confirmation of any final deal and underscoring that Chinese law would remain a guiding factor.

The discrepancy shows how far the two governments remain apart on specifics. Washington wants visibility on TikTok’s algorithm and data handling, while Beijing insists on retaining a say over its companies’ intellectual property.

Why South Korea Matters

The APEC Summit provides a stage for the first in-person Trump–Xi meeting since 2019. Trump has suggested a follow-up visit to China in 2026, while Xi has kept the door open to a U.S. trip later. The choreography signals a cautious thaw in communication even as trade frictions, security tensions, and supply chain disputes persist.

For investors, APEC is more than optics. The summit will host parallel discussions on semiconductors, rare earths, agriculture, and national security rules. Even limited signs of cooperation could ease the atmosphere after years of escalation.

A Fragile Opening

No written agreement has yet been released, leaving key issues unresolved. Control over TikTok’s algorithm remains the sticking point, and Trump’s comments about possible U.S. investor board seats remain speculative.

Domestic politics in Washington could add further hurdles. Divisions in Congress and strong national security pushback suggest that any framework would face a drawn-out approval process. Beijing, meanwhile, continues to emphasize sovereignty over its companies, limiting the scope for compromise.

Market Implications

Markets have greeted the announcement with restrained optimism. Preserving TikTok’s U.S. presence would reduce headline risk for the broader social media space. If talks collapse, the sector could quickly reprice, with investors reassessing regulatory exposure. Beyond equities, cross-border investment flows and emerging-market currencies may see marginal adjustments depending on how the negotiations play out.

Tips for Traders

• Meta Platforms (Zorrox: FACEBOOK) sentiment will track headlines on TikTok’s U.S. future.

• Keep an eye on U.S. congressional hearings for signs of bipartisan pushback.

• Watch Beijing’s statements for shifts in tone that might soften or harden the negotiating line.

• Expect volatility spikes in tech names if talks stall ahead of APEC.

• Position cautiously around cross-border themes, from trade tariffs to currency flows.