US President Donald Trump has signed an executive order that he says will allow TikTok to continue running in the United States under a new framework designed to satisfy national security requirements.
The move comes after President Joe Biden signed legislation last year mandating that TikTok’s Chinese parent company, ByteDance, sell its U.S. operations or face a nationwide ban. Trump, however, has repeatedly extended the app’s ability to operate as his administration pushes for a sale agreement.
Trump revealed Thursday that Chinese President Xi Jinping has approved the deal in principle, though the Chinese embassy in Washington has yet to confirm. Details of the agreement remain murky, but any major change could reshape how millions of Americans, especially young people, consume news and entertainment online.
TikTok’s Influence Among Young Audiences
According to new data from the Pew Research Center, 43% of Americans under 30 now say they regularly get their news from TikTok, a higher share than YouTube, Facebook, or Instagram. This growing influence underscores why the app’s future remains such a hot-button issue.
What The Deal Looks Like
The White House says TikTok’s U.S. operations will be spun into a new joint venture majority-owned by American investors, including Oracle and Silver Lake Partners. Under the tentative terms, U.S. firms would hold roughly 80% of the stake, while ByteDance would retain no more than 20%.
A board dominated by U.S. investors would oversee the new platform, with ByteDance holding only a single seat, and that representative barred from involvement in security matters.
Among the expected stakeholders are Oracle co-founder Larry Ellison and media mogul Rupert Murdoch, both of whom have close business or political ties to Trump. Ellison, still active at Oracle as chairman and chief technology officer, could emerge as a key behind-the-scenes media player. Trump also said that Dell Technologies founder Michael Dell will take part as an investor.
Algorithm At The Center Of Security Fears
At the heart of the national security debate is TikTok’s powerful recommendation algorithm, which curates users’ endless video feeds. U.S. officials have long warned that Chinese authorities could manipulate the algorithm to spread propaganda or shape narratives, though no concrete evidence has been presented.
China previously insisted the algorithm must remain under its control. But under U.S. law, any TikTok divestment must sever ties with ByteDance. A Trump administration official said the U.S. version of TikTok will instead use a licensed copy of the algorithm, retrained exclusively with American data to reduce the risk of foreign influence.
Trump’s Changing Stance On TikTok
Trump originally tried to ban the app during his first term, warning that China could exploit Americans’ data. But his tone shifted in recent years, with the president often citing TikTok’s role in helping him connect with younger voters ahead of the 2024 election.
At the signing ceremony, Trump emphasized that young people “really wanted this to happen,” while Vice President J.D. Vance said the agreement allows TikTok to remain accessible while bolstering security safeguards.
Beijing’s Shifting Position
Beijing once denounced U.S. demands to divest TikTok as ‘robbery.’ Yet as U.S.-China trade talks have progressed, officials appear more open to compromise. Some analysts believe China may have secured concessions on trade in exchange for allowing the TikTok deal, while others suggest it was a strategic move to ease diplomatic tensions ahead of potential Trump-Xi talks.
Sun Yun of the Stimson Center argued that the deal helps sustain momentum in trade negotiations, while Dimitar Gueorguiev of Syracuse University described TikTok as an ‘expendable concession’ for Beijing. With rival apps like Instagram offering similar features, TikTok no longer carries the same disruptive edge it once did.
Instead, Gueorguiev said China’s real focus lies in securing access to U.S. technology in areas like semiconductors, AI, and advanced manufacturing. “That is the front line of technological competition,” he explained. “TikTok, by contrast, is now a maturing consumer app with diminishing strategic weight.”
