Madrid has been the place where something historical has happened. Something unpublished. The first “technological barter” of the new commercial era between the United States and China.
Both powers have agreed a frame (one “Framework “) For Tiktok to pass to American control. The difference is what each part has decided to communicate to its citizenship, although we have heard the rest of the world. And that says a lot about the priorities of each country.
Why is it important. China has turned Tiktok into the horse of a chess where he no longer gives technological concessions, but changes them for economic access. US Treasury Secretary Scott Besent has confirmed the “Frame for an agreement on Tiktok“, But the real conditions will be known when the call between Trump and Xi Jinping arrives next Friday 19.
Between the lines. The statements of both countries show divergent strategies:
- The United States focuses on national security and property.
- China Emphasize the “Chinese characteristics” of the algorithm and the “intellectual property rights”.
This difference is not accidental: China is establishing that its technology has commercial value, not just regulatory.
The time chosen to announce antimonopoly research against Nvidia is not coincidence either. China He has accused Huang giant to violate competition laws related to Its acquisition of Mellanox in 2019.
He Timing He speaks for himself: in Madrid he was negotiating about Tiktok, but China also wanted to remember that he also has ways to pressure US technology companies.
The context. This is the fourth round of conversations in four months between the two world economic powers. The American tariffs to Chinese products They have oscillated between 145% and current 30%. China maintains 10% on US products. The next tariff pause expires in November. Two months seen adding urgency and pressure to negotiations.
Growing pressure. Research to Nvidia is the best example of an uncomfortable new reality: Western technology companies depend more on China as a market than China of them as suppliers.
China represents 13% of Nvidia’s total salesand the company has failed to send Your H20 chips specifically designed for the Chinese market for US regulatory obstacles.
Evolutionary. The Tiktok agreement could sit for a precedent for future technological negotiations. China has indicated that you could license intellectual property rights, including algorithms, instead of completely transferring technology.
- This model would allow a certain control over technology while meeting the US demands.
And now what. Commercial details are still a secret, but some analysts cited by BBC They suggest that Oracle could be part of the buyer consortium. The fire test will be whether the agreement manages to give a folder to concerns about national security, or if you simply make up for changes in paper property.
The next commercial conversations, scheduled for a month, will determine if this technological exchange model by economic access extends to other sectors.
- China has already shown that you can use its antitrust regulations as a pressure tool.
- And that makes the Chinese market a commercial weapon as effective as US tariffs.
Outstanding image | Solen Feyissa
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