Executive Order Formalizes TikTok U.S. Operations
President Donald Trump signed an executive order on Thursday, September 25, 2025, to allow the popular social media platform TikTok to continue operating in the United States under a proposed deal for majority U.S. ownership. The order aims to formalize actions outlined by a 2024 law, signed by President Joe Biden, which mandated that TikTok's parent company, ByteDance, sell its U.S. assets or face a nationwide ban. This marks a significant development in the ongoing efforts to address national security concerns surrounding the Chinese-owned application.
Background on National Security Concerns and Divestment Mandate
The move comes after years of scrutiny from U.S. officials who have raised concerns that TikTok, owned by Beijing-based ByteDance, could pose a national security risk. These concerns centered on the potential for the Chinese government to access American user data or influence content on the platform. While the Trump administration in 2020 had previously issued executive orders threatening a ban if TikTok was not sold, those actions were challenged in court and later revoked by the Biden administration. The 2024 law reignited the push for divestment, setting a deadline for ByteDance to sell its U.S. operations.
Details of the Proposed U.S. Ownership Deal
The executive order, reportedly titled 'Saving TikTok While Protecting National Security,' greenlights a deal that would see a consortium of mostly U.S. investors take a controlling stake in TikTok's U.S. operations. Key players in this proposed arrangement include technology giant Oracle and retail behemoth Walmart, alongside investment firms such as Silver Lake and the Emirati state-owned MGX. Under the terms, ByteDance would retain less than 20% equity in the new entity, which is expected to be valued at approximately $14 billion. The new company, referred to as TikTok Global, would be headquartered in the U.S. and feature a board of directors with a majority of American members. Oracle is slated to serve as TikTok's 'secure cloud technology provider,' hosting all U.S. user data in its Generation 2 Cloud data centers. Furthermore, the deal stipulates that TikTok's algorithm will be retrained solely with U.S. data and controlled by the American entity, aiming to nullify risks of foreign interference and influence. The arrangement is also projected to create over 25,000 new jobs in the U.S. and contribute more than $5 billion in new tax revenue to the U.S. Treasury.
Reported Chinese Approval and Official Stance
President Trump stated that Chinese President Xi Jinping 'gave us the go-ahead' to proceed with the deal during a recent conversation. However, Chinese officials have maintained a more circumspect public stance, emphasizing that any deal must comply with Chinese laws and market principles, without explicitly confirming Xi's direct approval. Some analysts suggest that China's softened rhetoric may indicate a willingness to compromise, potentially viewing TikTok as an 'expendable concession' within broader U.S.-China trade negotiations.
5 Comments
Fuerza
Trump gets it done. No more foreign meddling with our data.
Manolo Noriega
On one hand, securing U.S. ownership and data hosting is a significant step towards national security and creating jobs. On the other hand, the reported Chinese approval suggests a level of compromise that might not fully eliminate all risks.
Fuerza
It's positive that a potential ban was avoided and an economic benefit is projected for the U.S. Still, the article doesn't fully clarify how the 'retrained' algorithm will truly be free from any past or future foreign influence.
Ongania
The move to secure U.S. control over TikTok's operations is a welcome development to protect user data. However, the valuation and the speed at which this deal was formalized raise questions about its thoroughness and long-term implications.
Fuerza
A partial sale isn't a solution. Still too much Chinese influence.