Dear Focus Reader,

U.S. President Donald Trump and Chinese President Xi Jinping held a call Friday, marking their second phone conversation in 2025. Trump described the call as "very productive," highlighting progress on multiple issues, including the ongoing negotiations over TikTok's U.S. operations.

Trump announced via Truth Social that Xi had "approved" a deal that would allow TikTok, owned by Chinese company ByteDance, to continue operating in the U.S. under American ownership. Reports indicate that Oracle and other U.S. investors would run the app using algorithm technology licensed from ByteDance. However, China's Ministry of Foreign Affairs offered a more measured statement, emphasizing that enterprises should negotiate solutions "in accordance with market rules" and comply with Chinese law, without explicitly confirming the approval Trump described.

The TikTok discussions reflect broader tensions between U.S. national security concerns and commercial interests, with U.S. lawmakers from both parties scrutinizing the deal and saying it must ensure China has no control over TikTok's algorithm or access to U.S. user data.

Trade issues were also discussed. Xi reportedly urged the U.S. to avoid unilateral trade restrictions that could undermine progress made in previous consultations, signaling Beijing's readiness to "play hardball." Other unresolved issues include tech export restrictions, Chinese purchases of U.S. agricultural products, and rare earth mineral exports.

The call set the stage for further engagement: Trump said he would meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea at the end of October, running into early November, and intends to visit China in early 2026.

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