On Thursday, President Donald Trump took a significant step by signing an executive order aimed at allowing TikTok to operate within the United States under a set of new conditions that the White House claims will enhance national security. This development, reported by the Associated Press, outlines a plan to separate TikTok's U.S. operations from its Chinese parent company, ByteDance, transferring majority control to a consortium of American investors.
President Trump stated that the arrangement has received approval from Chinese President Xi Jinping, although comprehensive details of the deal remain undisclosed. According to Trump, the objective is to ensure fair treatment of all "philosophies and policies" on the platform, which is immensely popular among teenagers and young adults in the country.
Major U.S. Investors to Steer TikTok
Vice President JD Vance expressed that the new model will ensure that "American investors control the algorithm" determining user content consumption. Key partners include Oracle and Silver Lake Partners, which are poised to control approximately 80% of the new entity, while ByteDance would retain a minority stake of 20% or less. The board will be predominantly American, excluding the Chinese representative from security committees.
The agreement prominently features individuals with business and political connections to Trump, such as Oracle co-founder Larry Ellison and media mogul Rupert Murdoch. Businessman Michael Dell is also mentioned as part of the investor group. This concentration of close allies has sparked questions about potential political interference in the app's editorial management.
Digital Rights Concerns and Algorithm Control
Digital rights organizations, like the Electronic Frontier Foundation, have raised concerns, stating that the key issue is not whether the app will become "100% MAGA," as Trump jokingly suggested, but how critiques of the president and his allies will be handled on the platform. The TikTok algorithm, central to Washington's concerns, will be replicated and retrained using exclusively American data, as per the administration's plan, to eliminate any threat of Beijing's influence.
Although no evidence of manipulation by China has been presented, lawmakers from both parties have advocated for ByteDance's separation, arguing that the technology could be misused for propaganda. Trump, who initially sought to ban the app unless it severed ties with China, has softened his stance in recent years, acknowledging TikTok's role in engaging young voters during the 2024 campaign.
Impact on U.S. Social Media Landscape
The executive order reflects an attempt to balance political and security interests amid heightened technological tensions with Beijing. Analysts suggest the move could reshape the U.S. social media landscape. "The risk is that subtle changes in the algorithm's feed could alter user experience and ultimately erode the app's popularity," explained Jasmine Enberg, an eMarketer specialist.
Meanwhile, international policy experts believe Beijing conceded this point as TikTok has shifted from a "disruptive strategic asset" to a negotiable concession in the trade standoff with Washington. According to Dimitar Gueorguiev, a professor at Syracuse University, China aims to prioritize other sectors, such as artificial intelligence, the semiconductor industry, and advanced manufacturing.
Though many details remain to be settled, the new legal framework for TikTok marks a profound shift in control of the social media platform most popular among young Americans and adds another chapter to the ongoing technological battle between Washington and Beijing. The executive order signed by Trump to allow TikTok's continued presence in the U.S. under local capital control concludes a prolonged and tense negotiation phase.
The president managed this issue cautiously, following a series of deadline extensions granted to the social network to find an acceptable solution in Washington's eyes. For weeks, Trump hinted at the possibility of an agreement, even suggesting a deal was close, highlighting that TikTok could remain in the country if it detached from its Chinese parent company, ByteDance, and demonstrated a clear commitment to U.S. national security.
Shortly thereafter, the president approved an additional three-month extension, fueling speculation about a negotiated resolution. Concurrently, numerous business and diplomatic efforts accelerated to ensure the social network's future would not be in China's hands. In recent statements, Trump emphasized that the talks included the participation of senior Chinese officials and ultimately reached a consensus benefiting all parties.
The focus has been on algorithm control and data management, two critical points for U.S. authorities seeking to prevent any potential foreign influence over content consumed by millions of young people in the United States.
Key Questions about TikTok's Future under U.S. Control
How does the executive order impact TikTok's operations in the U.S.?
The executive order allows TikTok to continue operating in the U.S. under new conditions, requiring separation from ByteDance and majority control by American investors.
Who are the major partners involved in the new TikTok entity?
Oracle and Silver Lake Partners are the major partners, expected to control around 80% of the new TikTok entity, with ByteDance retaining a minority stake.
What concerns are raised regarding political influence on TikTok?
Concerns about political influence arise due to the involvement of Trump's allies in the deal, potentially affecting the app's editorial management and content policies.
What are the key factors driving the executive order's implementation?
The key factors include national security concerns, control of the algorithm, and preventing foreign influence on the platform used by millions of young Americans.