TikTok becomes a focal point amid high-stakes negotiations between the US and China where the threat of a ban looms over its users.
Politics and TikTok Negotiations
Negotiations over TikTok have taken on political significance. US President Donald Trump and Chinese President Xi Jinping are set to discuss the app's fate during a Friday meeting. Trump has shifted his stance from calls for a ban to embracing the platform after gaining popularity among younger users. Meanwhile, Xi seeks to retain the app's 'Chinese characteristics' while avoiding humiliating concessions.
Oracle as a Potential Buyer
Among potential buyers of TikTok, Oracle stands out, having already stored the data of American users. Oracle's stock rose more than 3% following news of a potential deal, highlighting investor confidence in its success. While Oracle is considered the frontrunner, other bidders, including Microsoft and investor groups, are still in play.
Deadline and the Market
The September 17 deadline looms large over the stock market. Treasury Secretary Scott Bessent noted that the deadline could be extended by 90 days if negotiations continue, yet uncertainty still weighs on investors. A shutdown of TikTok could provoke backlash from millions of users, and any deal must undergo scrutiny in Congress.
The talks surrounding TikTok against the backdrop of broader trade disputes between the US and China highlight how digital platforms can become tools of political leverage. The next steps for Trump and Xi will determine whether the nations can reach a compromise.
