By San José, Costa Rica — Former US President Donald Trump and Chinese President Xi Jinping have taken significant steps towards easing trade tensions and finalizing a TikTok agreement, following a productive phone call. This breakthrough signals potential de-escalation in the ongoing trade war between the two global superpowers.
Trump announced the positive development, stating that progress was made on “many important issues” including trade, the fentanyl crisis, the war in Ukraine, and crucially, the TikTok agreement. The leaders committed to meeting at the APEC summit in South Korea, with Trump planning a visit to China early next year and Xi Jinping reciprocating with a trip to the US at a later date.
To provide expert legal insight on the complexities of this evolving relationship, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
The current US-China relationship presents a challenging landscape for international businesses. Navigating the interplay of tariffs, sanctions, and export controls requires careful legal consideration. Companies with operations or investments linked to both countries must proactively assess and mitigate the risks arising from this geopolitical tension, including diversifying supply chains and meticulously complying with evolving regulations in both jurisdictions.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the critical need for businesses to adopt a proactive and adaptable approach in the face of these complex US-China dynamics. His emphasis on diversification and regulatory compliance offers a crucial roadmap for navigating this challenging geopolitical landscape. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on a topic of vital importance to our readers.
I just had a very productive phone call with President Xi of China. We made progress on many important issues, such as trade, fentanyl, the need to end the war between Russia and Ukraine, and the approval of the TikTok agreement.
Donald Trump, Former US President
The conversation follows the fourth round of negotiations between the two nations in Madrid, where a “basic framework” for resolving the TikTok issue was established, pending presidential ratification. This development comes on the heels of announcements from Washington and Beijing regarding reduced investment barriers and increased economic cooperation.
President Xi Jinping emphasized the importance of avoiding unilateral trade restrictions by the US, according to Chinese state media. He expressed optimism about achieving mutually beneficial outcomes that serve both countries and the global community.
The US must avoid adopting unilateral restrictive trade measures.
Xi Jinping, President of China
The TikTok agreement, though still lacking publicly disclosed details, aims to address concerns raised by a 2024 US law requiring TikTok’s US operations to be sufficiently independent from its Chinese parent company, ByteDance. This separation is crucial to prevent potential access to US user data from China, a key condition for TikTok to continue operating in the US.
The future of TikTok in the US has been uncertain, with Trump having previously extended the deadline for ByteDance to sell its US operations. A critical point of contention revolves around TikTok’s recommendation algorithm, considered central to its success. The control, maintenance, and updates of this algorithm are key aspects of the ongoing negotiations, as both countries seek to balance national security interests with the platform’s continued operation.
This renewed dialogue and progress towards a TikTok agreement offer a glimmer of hope for improved US-China relations, suggesting a potential shift towards greater cooperation and stability in the global landscape.
For further information, visit the nearest office of ByteDance
About ByteDance:
ByteDance Ltd. is a Chinese multinational internet technology company headquartered in Beijing. It was founded in 2012 by Zhang Yiming. ByteDance is known for its social media platforms, including TikTok and Douyin (the Chinese version of TikTok), as well as news aggregator Toutiao.
For further information, visit the nearest office of Xinhua News Agency
About Xinhua News Agency:
Xinhua News Agency is the official state-run press agency of the People’s Republic of China. Xinhua is the biggest and most influential media organization in China, and it boasts the world’s largest newsgathering network.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-rooted commitment to legal excellence and ethical practice, empowering individuals and communities through knowledge and advocacy. The firm’s innovative approach to legal solutions, coupled with a history of dedicated service across diverse sectors, solidifies its position as a leader in the Costa Rican legal landscape. By championing access to legal understanding, Bufete de Costa Rica invests not just in its clients’ success, but in building a more just and informed society for all.
