Good morning. President Trump and Chinese leader Xi Jinping approved a preliminary agreement for a group of investors to take control of TikTok’s U.S. operations, setting the stage for further negotiations while the two sides continue hammering out details.

Basic terms: Under the framework, U.S. investors would take control of the video-sharing app through a new entity that would operate algorithms using technology licensed from TikTok parent ByteDance, a structure designed to alleviate national-security concerns associated with millions of Americans using a platform controlled by a Chinese firm.

What's missing: Details of the arrangement haven’t been publicly released. Many of the agreement’s finer points and legal issues still need to be worked out before the complex transaction can be finalized, according to White House officials and people familiar with the discussions.

Who owns what? Under the arrangement, a consortium of new TikTok investors and existing backers would together own roughly 80% of the entity, with ByteDance’s ownership dropping below 20% to comply with a U.S. law passed last year, The Wall Street Journal previously reported.

The reward: The government is expected to receive a multibillion-dollar fee from investors, the latest in a string of lucrative government deals with the private sector.

• Deal to Keep TikTok in U.S. Is Near. These Are the Details.
• Trump Touts TikTok Deal but Doesn’t Address Fear That China ‘Retains a Veto’
• Trump Says Murdochs Likely to Be Part of TikTok U.S. Investor Consortium

Under Trump pressure, EU proposes going after Chinese companies buying Russia oil.

The European Union proposed sanctions against Chinese and other foreign companies buying Russian oil, as part of a package of measures intended to show President Trump the bloc is ramping up economic pressure on Russia and its backers.

The EU also would impose new banking sanctions, blacklist additional companies aiding Russia’s military and speed up its plan to phase out purchases of Russian liquefied natural gas. The measures will need the backing of all 27 member states, which isn’t guaranteed.

Trump administration’s cartel fixation comes under microscope in foreign bribery case.

U.S. prosecutors denied that they twisted facts in a foreign bribery case to fit a Trump administration mandate giving priority to litigation with organized crime ties, Risk Journal reports.

Evidence of defendant Ramon Alexandro Rovirosa Martinez’s alleged violent behavior and connections to unspecified Mexican cartels comes from multiple sources covering a large time frame that ranges from 2019 to 2024, prosecutors said Thursday in a filing in Texas federal court. The portion of the filing identifying the sources of information was redacted.

Defendant's response. Lawyers for Rovirosa, a Texas businessman who stands accused of bribing Mexican officials in exchange for contracts with its state oil company, argued that the case should be dismissed because prosecutors made up his cartel ties to shore up a “horribly deficient” case and to appease political leadership within the Trump administration.

• PayPal faces a congressional investigation into whether it can fully comply with U.S. anti-money-laundering laws after partnering with Chinese payments app Weixin Pay, which U.S. authorities have said is a hub for money launderers.
   
• The Trump administration flexed its new authority over U.S. Steel, blocking the company’s plan to shut down production at an Illinois plant this fall.
   
• A federal judge on Friday struck President Trump’s $15 billion defamation lawsuit against the New York Times, characterizing the president’s legal complaint as a vitriolic screed that violated basic court requirements for suing someone.
   
• A top federal prosecutor who has been under pressure to bring criminal charges against New York Attorney General Letitia James, a vocal Trump critic, is resigning after the president said he wanted him ousted.
   
• The FDA, under President Trump’s directive, is cracking down on direct-to-consumer pharmaceutical ads.
   
• A civil trial is beginning that will examine Amazon’s tactics for enrolling and disenrolling consumers from its Prime service.
   
• A panel of Wall Street executives gathered at the U.S. Securities and Exchange Commission on Thursday to debate a rule designed to make sure investors get competitive prices.
   
• Two recent fatal accidents involving Chinese-made air bag parts are renewing warnings from regulators over counterfeit components that can explode during a crash.

Trump’s $100,000 H-1B visa fee sets off scramble across corporate America.

The White House raced to calm panicked tech executives over the weekend after President Trump’s changes to the popular H-1B visa plunged the program into chaos.

The announcement on Friday that the administration planned to add a new $100,000 annual fee for H-1B visa applications beginning at 12:01 a.m. ET Sunday caught companies and employees off guard, setting off a wave of anxiety and confusion. Many feared they would have to pay the fee for existing H-1B holders trying to return to the country after that time.

• Trump Adds $100,000 H-1B Visa Fee and Rolls Out $1 Million ‘Gold Card’
• Will the $100,000 Visa Fee Create More U.S. Jobs? Economists Aren’t So Sure

In historic shift, U.K., Australia and Canada recognize a Palestinian state.

The U.K., Australia and Canada said Sunday they would formally recognize a Palestinian state, a significant shift in longstanding foreign policy among Western governments and a reflection of growing global dissatisfaction with Israel after nearly two years of war in Gaza.

Impact. The triple announcement fires the starting gun on a week that will bring a watershed moment in international relations between Israel and major international powers. France, Belgium and several others are also expected to use a gathering of world leaders at the United Nations General Assembly this week to declare their recognition of Palestine as a state.

• The World Sees Hope for a Two-State Solution. Israelis and Palestinians See None.
• Netanyahu Responds to International Pressure With a Playbook He Knows: Defiance
• U.S. Plans $6 Billion in New Arms Sales to Israel

• Cardboard-box demand is slumping, flashing a potential warning about the health of the American consumer given that goods ranging from pizzas to ovens are transported in corrugated packaging.
   
• President Trump’s trade war almost broke Mexico and Canada’s relationship. Now they are trying to repair the damage ahead of tough negotiations with the U.S.
   
• President Trump said he ordered a lethal military strike on a vessel allegedly carrying drugs to the U.S., marking at least the third such attack in the administration’s expanding crackdown on what it says are Latin America-based cartels.
   
• The Trump administration is considering a plan to spur domestic factory construction using a $550 billion investment fund from Japan.
   
• NATO jet fighters intercepted Russian war planes that violated Estonia’s airspace Friday, causing the tiny Baltic state to call for formal consultations with members of the Western alliance.
   
• Meanwhile, the head of Britain’s foreign-intelligence agency, MI6, warned that Russian President Vladimir Putin has no desire to end the war in Ukraine.
   
• With the U.S. rethinking its global role and the Trump administration raising tariffs and telling allies to do more to fend for themselves, Singaporean Prime Minister Lawrence Wong told The Wall Street Journal: “We are in for a period where there will be a lot of unpredictability.”

Failed stopgap funding bill puts key federal cybersecurity legislation in jeopardy.

The collapse on Friday of an emergency federal funding bill leaves the fate of cybersecurity legislation that provides legal protection for companies sharing cyber-threat intelligence up in the air.

Without a reprieve of the expiring cyber legislation that had been included in the funding bill, companies face uncertainty on how to communicate about cyber threats as competing reauthorization bills work through a divided House and Senate.

• The upper echelon of the Trump administration and the Republican Party memorialized Charlie Kirk on Sunday in a political and religious event with little modern parallel, telling a packed football stadium that the slain activist was a Christian and conservative martyr.
   
• President Trump all but ordered Attorney General Pam Bondi to prosecute his political foes, in a series of weekend posts that questioned the lack of action and named one of his former personal attorneys as a new prosecutor to helm some of the investigations.
   
• Big companies from Microsoft to Paramount and NBCUniversal are ordering workers to show up to the office more often. If only their staffs would heed the call.
   
• The Trump administration’s “Make America Healthy Again” commission criticized lobbying efforts by American corporations to shape policy. Then it invited them to the table.

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