President Donald Trump is preparing to sign an executive order that would finalize a long-awaited agreement to separate TikTok’s American operations from its Chinese parent company, ByteDance. The move follows a 2024 law requiring the app to be sold or banned in the United States over national security concerns. The new framework, expected to be formalized on Thursday, is designed to keep TikTok accessible for its more than 170 million U.S. users while placing strict controls on ownership and oversight.
Under the deal, a coalition of American investors—including major players such as Oracle and private equity firms—would take majority control of TikTok U.S. ByteDance would be allowed to retain a stake of less than 20 percent. Crucially, TikTok’s powerful recommendation algorithm and its U.S. data operations would fall under American supervision. To reinforce this shift, six of the seven board seats overseeing TikTok U.S. would be filled by U.S. citizens, a safeguard meant to limit Beijing’s influence.
The White House has touted the deal as a way to meet the requirements of the 2024 law while addressing long-standing concerns that TikTok could expose sensitive American user data to the Chinese government. U.S. officials have described the arrangement as not just a business restructuring but a national security measure designed to wall off the app from foreign control. Trump’s executive order would declare the agreement compliant with federal law, clearing a major legal hurdle that could have otherwise forced TikTok off American app stores.
Still, the arrangement is not yet final. The plan will require approval from Chinese regulators, and it remains uncertain whether Beijing will accept a deal that so sharply reduces ByteDance’s influence. Any resistance could complicate or delay the transition, reviving the possibility of a full U.S. ban. For now, however, the Biden administration and White House aides view the deal as the clearest path to keeping TikTok alive in the U.S. while limiting national security risks.
