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US, China Reach Framework Deal on TikTok; Trump and Xi to Speak on Friday

US Treasury Secretary Scott Bessent speaks to the press, on the day of US-China talks on trade, economic and national security issues, in Madrid, Spain, September 15, 2025. (Reuters)
US Treasury Secretary Scott Bessent speaks to the press, on the day of US-China talks on trade, economic and national security issues, in Madrid, Spain, September 15, 2025. (Reuters)
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US, China Reach Framework Deal on TikTok; Trump and Xi to Speak on Friday

US Treasury Secretary Scott Bessent speaks to the press, on the day of US-China talks on trade, economic and national security issues, in Madrid, Spain, September 15, 2025. (Reuters)
US Treasury Secretary Scott Bessent speaks to the press, on the day of US-China talks on trade, economic and national security issues, in Madrid, Spain, September 15, 2025. (Reuters)

The United States and China reached a framework agreement to switch short-video app TikTok to US-controlled ownership that will be confirmed in a call between President Donald Trump and Chinese President Xi Jinping on Friday, US officials said on Monday. 

US Treasury Secretary Scott Bessent said a Wednesday deadline that could have switched off the popular social media app in the US encouraged Chinese negotiators to reach a potential deal. He said that deadline could be extended by 90 days to allow the deal to be finalized. He declined to discuss specifics of the deal. 

Bessent said when commercial terms of the deal are revealed, it will preserve aspects of TikTok that Chinese negotiators care about, including its "Chinese characteristics."  

"They're interested in Chinese characteristics of the app, which they think are soft power. We don't care about Chinese characteristics. We care about national security," Bessent told reporters at the conclusion of two days of talks in Madrid.  

It is the second time this year that the two sides have said they were nearing a TikTok deal. The earlier announcement in March ultimately did not pan out. 

Any agreement could require approval by the Republican-controlled Congress, which passed a law in 2024 requiring divestiture due to fears that TikTok's US user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or conduct influence operations through the app. 

But the Trump administration has repeatedly declined to force a shutdown, which could anger the app's millions of users and disrupt political communications, including those of the White House. It is not clear whether parent company ByteDance would transfer control of the app's underlying technology to the unnamed US buyer. 

Trump praised the TikTok deal on Monday. 

"The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly," Trump wrote on his Truth Social platform. "A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!"  

The US-China negotiations at the Spanish foreign ministry's baroque Palacio de Santa Cruz were the fourth round of talks in four months to address strained trade ties as well as TikTok’s looming divestiture deadline. 

Delegations led by Bessent and Chinese Vice Premier He Lifeng have met in European cities since May to try to resolve a trade war that has seen tit-for-tat tariff hikes and a halt in the flow of rare earths to the United States. 

US Trade Representative Jamieson Greer, who was also part of the US delegation in Madrid, said the TikTok deal was an indication of good faith between the two sides. 

"It's no secret that there are serious issues on trade, economics, and national security between the United States and China. To be able to come, sit down, quickly identify the issues, narrow them down to a very granular spot, and be able to come to a conclusion, subject to the leaders’ approval, I mean, that is remarkable," Greer said. 

TRUMP, XI TO DISCUSS MEETING 

Bessent said talks on other issues would continue, probably in the coming weeks. Trump has repeatedly expressed interest in a meeting with Xi, and China is trying to woo Trump to Beijing for a summit. 

Bessent said it was up to the leaders to discuss whether to meet during Friday's call. 

Earlier on Monday a US official with knowledge of the negotiations had said that the US would press ahead with a ban on TikTok if China didn't drop its demands for reduced tariffs and technological restrictions as part of a divestiture deal. 

Speaking to reporters, Bessent and Greer said China wanted concessions on trade and technology in exchange for agreeing to divest from the popular social media app. 

"Our Chinese counterparts have come with a very aggressive ask," Bessent said, adding: "We are not willing to sacrifice national security for a social media app."  

The talks took place as Washington demands that its allies place tariffs on imports from China over Chinese purchases of Russian oil, which Beijing on Monday said was an attempt at coercion.  

Bessent said the issue of Russia was briefly discussed.  

Beijing separately announced on Monday that a preliminary investigation of Nvidia had found the US chip giant had violated its anti-monopoly law. Bessent said the announcement on Nvidia was poor timing. 

The probe is widely seen as a retaliatory shot against Washington's curbs on the Chinese chip sector.  

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Chaired by Saudi Crown Prince, PIF Board of Directors Approves PIF 2026-2030 Strategy

Saudi Crown Prince Mohammed bin Salman - SPA
Saudi Crown Prince Mohammed bin Salman - SPA
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Chaired by Saudi Crown Prince, PIF Board of Directors Approves PIF 2026-2030 Strategy

Saudi Crown Prince Mohammed bin Salman - SPA
Saudi Crown Prince Mohammed bin Salman - SPA

The Public Investment Fund (PIF) Board of Directors, chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, has approved PIF’s 2026-2030 strategy, a continuation of the fund’s long-term strategy that will focus on delivering competitive domestic ecosystems to connect sectors, unlock the full potential of strategic assets, maximize long-term returns, and continue to drive the economic transformation of Saudi Arabia and further enhance the quality of life of its citizens.

The 2026-2030 strategy marks a natural evolution as PIF moves from a period of rapid growth and acceleration to a new phase of sustained value creation, with a strengthened focus on maximizing impact, raising the efficiency of investments, and applying the highest standards of governance, transparency and institutional excellence. In addition, PIF will further enable the role of the private sector as an effective partner for sustainable economic development, according to SPA.

Under the 2026-2030 strategy, PIF has structured its investments into three portfolios. The Vision Portfolio aims to leverage synergies across strategic sectors, maximize value for PIF portfolio companies, and continue to drive the growth of the local economy. It will contribute to national priorities through the delivery of six competitive domestic ecosystems and by further integrating PIF’s investments. The Vision Portfolio will unlock new opportunities for the domestic private sector as an investor, partner, and supplier, to further enable its role as an effective partner for sustainable economic development, while also attracting global partners and investors.

The six ecosystems include: Tourism, Travel, and Entertainment; Urban Development and Livability; Advanced Manufacturing and Innovation; Industrials and Logistics; Clean Energy, Water, and Renewables Infrastructure; and NEOM.

The Strategic Portfolio will actively manage key strategic assets to maximize financial returns and the economic impact of PIF’s companies, while supporting their efforts to attract capital and become global champions. Through the Strategic Portfolio, PIF will also continue to invest in opportunities arising from long-term global trends.

The Financial Portfolio will focus on delivering sustainable financial returns to further strengthen PIF’s financial position and continue to grow national wealth for future generations. It will manage PIF’s direct and indirect investments in global markets to maximize returns, while building a more diversified and resilient portfolio. It will further strengthen strategic international partnerships to help attract capital and increase access to global investment opportunities.

PIF Governor Yasir Al-Rumayyan said: "PIF’s strategy continues to deliver results as we grow domestically and internationally. In less than a decade, we have launched unprecedented projects, including giga-projects and major real estate developments, in addition to unique investments in strategic sectors such as artificial intelligence, gaming and esports, and renewable energy. PIF also grew assets under management six-fold and attracted global partners and capital to take part in Saudi Arabia’s transformation."

He added that PIF will continue to support Saudi Vision 2030 objectives by delivering competitive domestic ecosystems, investing in national champions that have the potential to scale globally, and forming global economic partnerships, building on what has been achieved under PIF’s 2021-2025 strategy.

"The 2026-2030 strategy is a natural next step in PIF’s growth journey. It offers our partners more opportunities to invest in high-quality assets and ecosystems, alongside PIF. In the next five years, we will continue to build on our great achievements and strengthen our global leadership to deliver success for PIF and Saudi Arabia," Al-Rumayyan said.

PIF will continue to invest with agility in both local and international markets and maintain its ability to respond to emerging opportunities that benefit the local economy and impact an ever-shifting global economy. It will maintain a disciplined focus on value realization, sustainable returns, enhanced capital efficiency and the highest institutional standards, as it drives innovation and advanced utilization of data and artificial intelligence.

PIF’s 2026-2030 strategy provides a clear strategic direction for the coming decades. It also strengthens PIF’s position as a local and global investor, with a diversified and resilient portfolio that contributes to Saudi Arabia’s long-term economic prosperity. PIF’s unique mandate will remain the same: to drive the economic transformation of Saudi Arabia and generate sustainable financial returns.

The strategy builds on the substantial progress and achievements delivered by PIF under its previous strategies, including increasing grown assets under management from $150 billion in 2015 to more than $900 billion; achieving an annualized total shareholder return of over 7% since 2017; investing more than $199 billion in new projects in Saudi Arabia from 2021 to 2025; contributing more than $243 billion to real non-oil GDP from 2021 to 2024, equivalent to around 10% of Saudi Arabia’s total non-oil GDP in 2024; spending together with its portfolio companies more than $157 billion with the local private sector from 2021 to 2024; expanding PIF’s global presence in priority markets with subsidiary company offices in North America, Europe, and Asia to deepen PIF’s ties in international markets and continue to invest in sectors, industries, and companies shaping the future of the global economy; and being one of the few sovereign wealth funds with strong credit ratings from each of the world’s top three rating agencies. Moody’s rated PIF Aa3 with a stable outlook, while Fitch rated PIF A+, also with a stable outlook

Business

World Bank to Asharq Al-Awsat: Saudi Arabia Plays a Central Role in Stabilizing Energy Markets

FILE PHOTO: A cargo ship in the Gulf, near the Strait of Hormuz, March 11, 2026. REUTERS/Stringer/File Photo/File Photo
FILE PHOTO: A cargo ship in the Gulf, near the Strait of Hormuz, March 11, 2026. REUTERS/Stringer/File Photo/File Photo
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World Bank to Asharq Al-Awsat: Saudi Arabia Plays a Central Role in Stabilizing Energy Markets

FILE PHOTO: A cargo ship in the Gulf, near the Strait of Hormuz, March 11, 2026. REUTERS/Stringer/File Photo/File Photo
FILE PHOTO: A cargo ship in the Gulf, near the Strait of Hormuz, March 11, 2026. REUTERS/Stringer/File Photo/File Photo

At a time when waves of geopolitical tensions disrupt the stability of vital maritime corridors, fundamental questions are emerging about the ability of major economic ambitions in the Gulf to withstand the test of the Strait of Hormuz, which represents an indispensable “lifeline” for the global economy, according to Roberta Gatti, Chief Economist for the Middle East, North Africa, Afghanistan, and Pakistan at the World Bank.

In remarks to Asharq Al-Awsat, Gatti warned that current geopolitical tensions place the region’s economic diversification ambitions under a real test, while stressing, on the other hand, the central role Saudi Arabia plays in global energy markets through measures aimed at enhancing the reliability of supply chains. She explained that the Kingdom’s efforts extend not only to exporters, but also to inflation, trade, and global growth.

Last week, the World Bank issued a report ahead of the Spring Meetings of the World Bank and the International Monetary Fund, in which it maintained Saudi Arabia at the forefront, with projected growth of 3.1 percent in 2026, highlighting it as the Gulf economy most capable of coping with the repercussions of the current geopolitical crisis, despite sharp revisions affecting regional estimates. Data in the report also showed that the fiscal deficit is expected to narrow by half to 3 percent, from 6 percent in 2025, alongside a shift in the current account balance from a deficit of -2.7 percent to a surplus of 3.3 percent.

Chief Economist for the Middle East, North Africa, Afghanistan, and Pakistan at the World Bank (World Bank)

On Monday, the United States imposed a naval blockade on Iranian ports, in an attempt to escalate pressure on Iran to reopen the vital oil corridor following the collapse of peace negotiations in Pakistan over the past weekend. These negotiations are expected to resume in the coming days.

Gatti stressed: “Saudi Arabia plays a central role in global energy markets, and its efforts to strengthen resilience are especially important at a time of heightened uncertainty around the Strait of Hormuz.”

She added: “Measures that enhance the reliability of energy supply chains—whether through infrastructure investment, alternative export routes, spare capacity, or stronger logistical preparedness—can help reduce the risk that such shocks translate into broader global disruption. These efforts matter not only for reducing volatility in global oil and gas markets for the benefit of the exporters, but also for global inflation, trade, and growth, especially in energy-importing developing countries that are highly vulnerable to volatility of these markets.”

Economic Diversification Under Stress Test

Gatti said the current conflict has directly highlighted the strategic importance of economic diversification, which is a core objective adopted in national development plans across GCC countries. She pointed out that data recorded since February 28 clearly reflects this divergence, stating: “The current conflict has highlighted the importance of economic diversification, an objective mentioned in multiple National Development Plans of GCC countries. Since February 28, relatively more diversified economies such as the UAE and Bahrain have seen their forecasts downgraded significantly less than those of less diversified economies such as Qatar and Kuwait. In addition, these larger forecast downgrades for Qatar and Kuwait reflect their higher reliance on route that goes through Strait of Hormuz for trade and energy exports and the lack of alternative bypass routes.”

The World Bank expects Qatar’s economy to contract by 5.7 percent, marking a downgrade of 11 percentage points from previous estimates due to damage to liquefied natural gas supplies. Kuwait’s economy is also expected to contract more sharply by 6.4 percent, given its 100 percent reliance on the Strait of Hormuz for oil exports, making any closure of the strait equivalent to a complete halt of the country’s financial lifeline. In contrast, the UAE and Oman are expected to grow by 2.4 percent each, while Bahrain is expected to grow by 3.1 percent.

In this context, Gatti said the “Vision” strategies remain appropriate and vital, noting: “The ‘Vision’ strategies remain appropriate and important as they aim to reduce structural dependence on hydrocarbons and promote private sector–led growth, but, as these recent events show, their implementation is sensitive to external shocks and the impacts are likely to be uneven across the region: more diversified economies tend to be more resilient due to stronger fiscal buffers and deeper non-oil sectors. It also matters greatly into which new sectors the economies are diversifying. For example, prolonged instability could dampen investment and further disrupt tourism, aviation, and logistics sectors which have been expanding rapidly in the region. In contrast, sectors like banking and finance have been more insulated.”

The commercial port of Yanbu is one of Saudi Arabia’s current key maritime gateways (Mawani).

Energy Poverty

In her analysis, Gatti turned to the more severe dimension of energy market volatility, explaining that rising oil prices impose compounded pressures on developing importing countries, as they translate directly into higher electricity costs, more expensive public transportation, and rising food prices linked to increased fertilizer costs. She noted that these pressures inevitably lead to wider trade deficits and greater strain on public budgets, particularly in poorer countries with limited reserves, which are forced to bear significant fiscal costs if they attempt to subsidize energy prices to ease the burden on citizens.

Gatti further noted that reliable and affordable energy is not merely a service, but a lifeline for both households and firms. In this context, volatility in fuel and gas markets delivers a “double hit” to these economies, as households struggle to meet basic needs while firms face more expensive and less reliable energy, making industrial expansion slower, riskier, and less competitive. In this sense, sharp short-term price increases may not only have immediate effects, but could also disrupt long-term structural transformation in energy-poor developing economies.

She concluded: “The resilience of economies to withstand oil and gas shocks depends on exposure and vulnerability of their economic structures. Degree of reliance on imported energy matters, and so do reliance on energy-intensive sectors, and how consumers, firms, and government adapt to rising prices.”

The “Cost” of Alternative Energy Routes

Addressing the need to invest in land corridors or pipelines that bypass narrow maritime chokepoints, Gatti said the decision requires a careful balance between economic efficiency and resilience. She stated: “Decisions on such investments must balance consideration for economic efficiency and resilience to shocks. The concentration of oil and gas export routes from the Gulf through the Strait of Hormuz suggests that this is likely the most economically efficient option, given geography and other technical and economic considerations. On the other hand, diversifying trade routes brings resilience to shocks.”

For example she highlights that Saudi Arabia can “divert a portion of their oil exports to the Red Sea port of Yanbu via the East-West pipeline, with 7mbpd capacity. The UAE similarly has Habshan-Fujairah pipeline with 1.5-1.8mbpd capacity to bypass Hormuz. Conversely, the Kirkuk–Ceyhan pipeline between Iraq and Türkiye can carry only about 0.4 mbpd, well below its 1.5 mbpd intended capacity, because of the delayed repairs needed for the segment within Iraq.”

The End of the “Efficiency-Only” Era

On supply chain resilience, Gatti said the world is undergoing a severe test that began with the COVID-19 pandemic and has extended to regional conflicts, events that have exposed the fragility of excessive reliance on geographically concentrated production networks.

She stressed that the key lesson from these crises is that “efficiency alone is no longer enough,” as governments and companies increasingly need to build buffers, diversify sources, increase inventories of critical goods, and develop more flexible logistics systems.

The World Bank’s chief economist also pointed to the current analytical frameworks and extensive research to support countries in this transition, referring to the World Development Report 2020, which examined the challenges facing developing countries in the era of global value chains.

She also noted an upcoming report titled “Resources to Resilience: Economic Diversification for Oil and Gas Exporters in MENAAP,” which will provide a roadmap for exporters in the Middle East, North Africa, and Asia-Pacific on how to diversify their economic capabilities to navigate disruptions in maritime corridors and sudden shocks.

Business

Menzies Chairman to Asharq Al-Awsat: Aviation Services Sector Highly Resilient Despite Regional Disruptions

Chairman of Menzies Aviation Hassan El-Houry. (Menzies Aviation)
Chairman of Menzies Aviation Hassan El-Houry. (Menzies Aviation)
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Menzies Chairman to Asharq Al-Awsat: Aviation Services Sector Highly Resilient Despite Regional Disruptions

Chairman of Menzies Aviation Hassan El-Houry. (Menzies Aviation)
Chairman of Menzies Aviation Hassan El-Houry. (Menzies Aviation)

The aviation services sector continues to demonstrate strong resilience amid geopolitical tensions disrupting air traffic across the Middle East, said Hassan El-Houry, chairman of Menzies Aviation.

While airspace closures, flight cancellations and reroutings have strained operations, El-Houry described the situation as a stress test for an industry that has historically rebounded from crises.

In an interview with Asharq Al-Awsat, he outlined a transformation phase for the company, which has surpassed $3 billion in annual revenue for the first time, while highlighting expansion plans and growing investment in artificial intelligence.

Recent tensions have affected Menzies’ operations in markets including Iraq, Pakistan and Jordan, with broader impacts on global cargo routes and international airports. Rising jet fuel costs have added further pressure.

However, El-Houry said the aviation sector has repeatedly proven its ability to absorb shocks, with demand for air travel typically rebounding after crises. He expects passenger confidence to recover gradually as regional stability improves.

Airlines, he added, are increasingly prioritizing efficiency, cost control and operational flexibility. This shift has accelerated demand for integrated service providers with global reach and the capability to maintain safe and reliable operations during periods of disruption.

The trend is particularly evident in Saudi Arabia, where low-cost carriers such as flynas and flyadeal are expanding rapidly, driving demand for cost-effective service partners.

Menzies reported a 16% rise in revenue in 2025, exceeding $3 billion. El-Houry attributed the growth to disciplined strategy execution, structured expansion and stronger multi-service partnerships with airlines and airports.

The company now operates at 347 airports in 65 countries, handling 5.3 million flights annually, with a customer retention rate of 90%.

Its acquisition of G2 Secure Staff has significantly expanded its footprint in the United States, reinforcing its position as a leading aviation services provider in the world’s largest market.

To address cost pressures, Menzies is investing in innovation, including AI-powered tools that use computer vision to measure cabin baggage and advanced baggage reconciliation systems to improve accuracy and reduce manual workloads.

A workforce planning optimization system is already deployed in more than 30 locations and is expected to cover over 22,000 employees by the end of 2026.

El-Houry said acquisitions remain central to long-term growth, with the company pursuing expansion in both established and high-potential markets. Saudi Arabia is a key focus, with the Kingdom aiming to reach 330 million passengers annually under Vision 2030.

On technology, Menzies is expanding its MACH cargo management system, now active at 46 sites and handling 55% of cargo volumes. The company is also developing AI-based risk detection systems to enhance safety oversight, while aiming for full AI integration in workforce planning by 2028.

Sustainability remains a priority, with more than $200 million invested to increase the share of electric ground support equipment to 25% globally, supporting a net-zero emissions target by 2045.

El-Houry also pointed to growth opportunities in emerging markets, particularly in the Middle East, Asia and Latin America. In India, Menzies has secured a ground handling license at Kempegowda International Airport in Bengaluru and launched a new site for Air Menzies International as part of its global expansion strategy.