CNBC's The China Connection newsletter: TikTok tops the trade talk

Many successful concern circles were hoping for a sweeping U.S.-China commercialized deal, but an statement present looks adjacent much elusive.

The destiny of TikTok successful the U.S. overshadowed the latest circular of commercialized talks, to the constituent that it's present unclear whether some sides are connected the aforesaid leafage astir what the app's divestiture from Beijing-based genitor ByteDance should look like.

Meanwhile, connected issues similar tariffs, fentanyl and semiconductors, adjacent little has been said by either side.

The region is already visible. China has been soundless connected aboriginal meetings, adjacent arsenic U.S. President Donald Trump announced helium and Chinese President Xi Jinping "agreed" to meet astatine the Asia-Pacific Economic Cooperation (APEC) acme successful South Korea adjacent month.

The deficiency of details successful the Chinese side's statement "suggests that China is taking clip to negociate erstwhile U.S. is keen to person deals," said Winston Ma, adjunct prof astatine NYU School of Law, pointing retired that Beijing "said thing astir [an] APEC meeting."

And past there's China's vague commitments to a tech licensing deal to keep TikTok live successful the U.S. — what Beijing calls a "solution that complies with China's laws and regulations."

That contrasts with the changeless travel of details from the U.S., present covering everything from investors to board seats. A Politico report, citing an unnamed elder White House official, adjacent claimed that the Trump medication is "100% confident" of a woody forcing Beijing-based ByteDance to rotation disconnected TikTok's U.S. operations.

Trump, however, whitethorn person preempted China's coolness, saying successful a Truth Social post Friday that helium "appreciate[s] the TikTok approval" aft his telephone with Xi, adjacent arsenic Beijing kept its connection vague.

China, meanwhile, has paired that coolness with a media blitz astir its latest talks with the U.S. successful Madrid, aiming to task assurance arsenic a tech powerfulness pursuing a showcase of caller weapons astatine the Sept. 3 subject parade.

Context is everything

In the runup to the Madrid talks held earlier this month, Beijing announced new probes into U.S. chips — and, arsenic the negotiations wrapped up connected Monday, called retired Nvidia for alleged monopolistic practices. The adjacent evening, the authoritative evening quality broadcast — intimately watched by officials and anyone trying to work the beverage leaves connected Beijing — included a segment highlighting China's ain semiconductors.

A time earlier the Trump-Xi call, Chinese tech elephantine Huawei besides claimed its upcoming spot cluster would beryllium much almighty than Nvidia's.

All these quality items whitethorn look to beryllium abstracted events. But successful China, wherever ceremonial timing matters, small happens successful a vacuum — any enactment from a parade to chosen soundlessness is calculated, often tapping into a governmental discourse that whitethorn look unrelated to outsiders.

Notably, the latest statement implicit TikTok coincided with China's national cybersecurity week, held connected Sept 15-21. In past years, the lawsuit has served arsenic a level for Beijing to beforehand its nationalist information agenda.

"Honestly, I truly don't spot wherefore the Chinese broadside would person immoderate involvement astatine each successful divesting the ... U.S. TikTok," said Blueshirt Group Managing Director Gary Dvorchak, whose enactment connected Chinese listings successful the U.S. has taken him betwixt some countries.

"What's their summation from it? They're losing power of 1 of the crown jewels of China's technology," helium said, pointing retired that the U.S. would disagree if China wanted America to merchantability portion of Google oregon Facebook. "So wherefore would they bash thing that we would ne'er do?"

Despite the standoff implicit TikTok, China hosted a bipartisan delegation of U.S. House Representatives this week, who arrived the play aft the latest Trump-Xi telephone call. It was the archetypal specified sojourn since 2019.

U.S. typical Adam Smith, who led the trip, told reporters Tuesday that successful meetings with Chinese leaders, the 2 sides discussed TikTok arsenic an contented to beryllium resolved, but did not get into method details.

"I deliberation there's going to beryllium a batch of possibly affirmative noises" astir TikTok, Dvorchak said, "but past successful the end, astatine the past minute, it's ever going to autumn apart."

That said, the TikTok conflict has go portion of a larger crippled of governmental theatre. Beijing ne'er confirmed Trump's announcement aboriginal past week that helium would talk with Xi — until authorities media announced connected Friday that the 2 leaders were speaking.

But the much elaborate the posturing by some sides, the much hard it is to execute a woody with optics that satisfies some sides.

Apple iPhone 17 sees request rise. The U.S. smartphone elephantine could beryllium poised for a comeback, arsenic a fewer buyers successful Beijing told CNBC that much locals are giving the iPhone a effort this year due to its upgraded features. But the highly anticipated iPhone Air isn't coming to China yet owed to its eSIM design.

Chinese nationals deed with caller U.S. visa uncertainty. After the Trump medication said that it would inquire companies to wage $100,000 for caller H-1B visa applicants, galore Chinese shared their vexation connected societal media. China was the second-largest beneficiary of H-1B visas past year, accounting for 11.7% of approved visa holders, according to U.S. homeland information data.

ByteDance valuation hopes climb. Investor condemnation successful the Chinese tech elephantine has climbed since Washington and Beijing this week reached a model agreement on the long-contested aboriginal of TikTok successful the U.S., respective dealmakers told CNBC. The latest valuation? $400 billion.

Mainland China and Hong Kong stocks were higher, bucking wide declines successful Asia aft Federal Reserve Chair Jerome Powell said that "equity prices are reasonably highly valued."

Hong Kong's Hang Seng Index and mainland China's CSI 300 were up 1% and 0.88% respectively. Super Typhoon Ragasa brought hurricane-force winds to precocious grounds and confederate areas successful Hong Kong, the Hong Kong Observatory noted. Conditions stay severe, with dense showers and thunderstorms expected.

Shares of Alibaba listed successful Hong Kong jumped implicit 6% aft CEO Eddie Wu said Wednesday that the institution volition boost its concern successful artificial intelligence.

— Lee Ying Shan

The show of the Shanghai Composite implicit the past year.

Sept. 25: Xiaomi to motorboat 17 telephone bid arsenic CEO Lei Jun delivers yearly speech

Sept. 27: Industrial profits for August

Sept. 30: Official purchasing managers' scale (PMI)

Oct. 1-8: Mainland China markets closed for China's National Day holiday