US President Donald Trump signed an executive order on Thursday approving a deal to keep TikTok operating in the United States.
While signing the order at the White House, Trump noted that he had a ‘very good talk with President Xi’, who gave approval for the deal.
US investors will manage TikTok’s US operations through a newly established joint venture, ensuring no foreign adversary controls the platform.
A group of US investors, including Oracle, Silver Lake, and several others, will hold the majority stake in the new entity.
ByteDance, the Chinese parent company of TikTok, will retain less than 20 per cent ownership.
Vice President JD Vance confirmed that the new TikTok US entity will be valued at $14 billion.
He stressed that the agreement prioritises American data security while maintaining the app’s functionality for users.
Data Privacy and Algorithm Control
The executive order emphasises that American investors will control TikTok’s algorithm, ensuring that content decisions reflect business priorities rather than foreign influence.
“We wanted to keep TikTok operating, but also ensure Americans’ data privacy as required by law,” Vance said.
He added, “This deal ensures that the American entity and investors control the algorithm. Users and investors can make decisions based on what is good for their business, not another government’s propaganda.”
The order follows a phone call between Trump and Chinese President Xi Jinping last week, in which Xi reportedly approved the terms of the TikTok deal.
This approval allows the social media app to continue functioning in the United States under American oversight.
The move is expected to reassure users concerned about data privacy and to secure TikTok’s continued presence in the US market.
By establishing a $14 billion US-based entity with majority domestic control, the Trump administration aims to balance economic interests, technological innovation, and national security concerns.
The new TikTok entity will operate with enhanced safeguards, protecting user data and keeping algorithmic control under US oversight.
Analysts say the agreement sets a precedent for future technology deals involving foreign-owned platforms, highlighting the importance of balancing global business operations with national security considerations.
This executive order marks a significant step in regulating foreign-owned social media platforms while supporting continued innovation and investment within the United States.
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