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TikTok tops the trade talk

This report brings you insight and analysis from this week’s CNBC’s The China Connection bulletin about what directs the world’s second largest economy. You can subscribe Here.

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Many of them hoped for a comprehensive US-China trade agreement in their business circles, but an agreement seem even more difficult.

Tiktok’s fate in the United States shadowed the latest trade talks, and it is unclear whether the application of both sides should be disposed of from Beijing -based parental Baytans.

Meanwhile, fewer things have been said on both sides on issues such as tariffs, fentanyl and semiconductors.

The distance already appears. Even as US President, China remained silent at future meetings Donald Trump announced himself and Chinese President Xi Jinping Meet “ACCEPTED” Next month is at the Asian-Pacific Economic Cooperation (APEC) summit in South Korea.

Tiktok discussions, in recent talks, the US-China tariff overshadowed negotiations.

Anna Barclay | Getty Images News | Getty Images

Lack of detail The expression of the Chinese side “China argues that China has reserved time to negotiate when it is willy,” Nyu’s assistant professor Winston Ma said. [an] APEC meeting. “

And then China is Technical licensing agreement To keep Tiktok alive in the USA – Beijing says “a solution” It complies with China’s laws and regulations. “

This is now contrasting the continuous flow of details from the US, which covers everything from investors to the board seats. A Politico Report referring to an anonymous senior White House official claimed that there was even the Trump administration “100 % confident“An agreement that forces Tiktok to eliminate US operations in Beijing -based Bayta.

However, Trump prevents China’s coolness Real Social Post Friday “appreciation[s] Tiktok approval “Even if the Beijing holds the language uncertain, after his call with Xi.

Meanwhile, China matched this cool with a media blitz around Madrid with the latest talks with the US and aimed to reflect it as a technology force after a showcase of new weapons at the September 3 military parade.

Context is everything

Beijing, who progressed towards the Madrid talks held at the beginning of this month New probes to the US chips – And while the negotiations were completed on Monday, Nvidia For alleged monopoly applications. The next evening, the official evening news broadcast, which was closely watched by the authorities and everyone trying to read tea leaves in Beijing, contained a segment emphasizing China’s own semiconductors.

The day before the Trump-Xi call, the Chinese technology giant Huawei claimed that the approaching chip cluster would be stronger than Nvidia.

All these news items may seem like separate events. However, in China, where ceremonial timing is important, there is little in a void – any action is calculated from the passage ceremony to the silence selected, often touched in a political context that seems to be indifferent to foreigners.

In particular, the latest discussions about Tiktok coincided with China’s national Cyber ​​Security WeekIt was held on 15-21 September. In the past years, the event served as a platform for Beijing to introduce the national security agenda.

“To be honest, why the Chinese side will be interested in relieving the US Tiktok,” said Blueshirt Group General Manager Gary Dvorchak, the US lists in the United States took it between the two countries.

“What are their earnings from them? They’re losing control of one of China’s technology crown jewels,” he said, if China wants America to sell a part of Google or Facebook, he wouldn’t join the United States. “So why should they ever do something we can’t do?”

Although it was revealed against Tiktok, China hosted a bilateral delegation of a two-sided US home representatives who came at the weekend after the Trump-XI phone call this weekend. It was the first visit since 2019.

US representative Adam Smith, who led the journey, told reporters on Tuesday that the two sides discussed Tiktok as a matter that should be solved, but did not enter the technical details.

“I think there will be very positive voices about Tiktok, D Rorchak said,” But in the end, the last minute will always be disintegrated. “

However, Tiktok War has become part of a larger political theater play. Beijing announced that Trump will talk to XI at the beginning of last week – until the state media announced that the two leaders were talking on Friday.

However, the more detailed the stance of both sides, the more difficult it is to get an agreement with the optics that satisfy both sides.

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Your week’s quote

Investors, ‘China is lifeless and Alibaba increased by 100%. One of the largest companies in the world. Maybe I should look at it. ‘

– Mark Tinker, Toscafund Hong Kong’s CIO

In markets

The mainland of China and Hong Kong were higher, Federal Reserve President Jerome Powell said “stock prices are quite valuable.”

Hong Kong’s Hang Seng Index and Mainland China’s CSI 300% increased by 1% and 0.88%, respectively. Super Typhoon Ragasa Hong Kong observatory brought strong winds to the high lands and southern areas in Hong Kong. Conditions remain severe, heavy shower and storms are expected.

Shares Alibaba CEO Eddie Wu, listed in Hong Kong, said on Wednesday that the company will increase the investment of artificial intelligence.

Lee Ying Shahan

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