President Donald Trump on Thursday signed an executive order approving a plan to allow TikTok to continue operating in the United States under new American-led ownership, ending months of uncertainty about the app’s future amid national security concerns.
The move follows the Protecting Americans from Foreign Adversary Controlled Applications Act, which sought to ban TikTok unless its China-based parent company, ByteDance Ltd., divested control. Under the framework agreement outlined in the order, TikTok’s U.S. operations will shift to a new joint venture majority-owned by American investors, with ByteDance retaining less than 20 percent.
The new entity, headquartered in the United States, will oversee TikTok’s algorithms, data storage, and content moderation. Sensitive U.S. user data must be stored in cloud systems run by American firms, and recommendation models using U.S. data will be retrained and monitored by U.S. security partners.
Trump said the divestiture resolves national security concerns while preserving access to the app used by roughly 170 million Americans. “This agreement allows millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” the order states.
The executive order directs the Justice Department not to enforce the ban for 120 days while the transaction is completed. It also shields companies from penalties for any conduct before the order’s issuance.
The decision marks a turning point in the yearslong debate over TikTok’s ties to China, which lawmakers and intelligence officials have warned could expose Americans’ data to foreign adversaries. The administration said ongoing monitoring of TikTok’s code, algorithms, and software updates will ensure compliance.
TikTok’s future now hinges on execution of the divestiture plan and a CFIUS agreement with U.S. investors. Trump reserved the right to issue further orders if needed to safeguard national security.
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