Today, President Donald J. Trump signed an Executive Order aimed at saving TikTok from a potential ban while simultaneously safeguarding America’s national security. In this decisive action, President Trump has determined that the proposed divestiture framework, which involves TikTok’s U.S. application being operated by a new joint-venture company based in the United States, qualifies as a “qualified divestiture.” This move is designed to ensure that TikTok will be majority-owned by U.S. investors and operated under the supervision of a board of directors possessing national security and cybersecurity credentials.
Under the new agreement, ByteDance, TikTok's parent company, will retain less than 20% of the stock as mandated by law. They will only have the authority to appoint one out of the seven directors on the board and will be excluded from any involvement in the company’s security committee. Additionally, Oracle, one of America’s leading technology firms, will serve as TikTok’s security provider, independently monitoring and ensuring the safety of all operations conducted within the U.S.
This proposed divestiture effectively addresses national security concerns by complying with the Protecting Americans from Foreign Adversary Controlled Applications Act. By removing TikTok from China’s control, the agreement enables a new joint venture to manage the algorithm, source code, and content moderation decisions autonomously. Moreover, it strictly prohibits the storage of sensitive U.S. user data in a way that could allow foreign adversaries to gain access to it. All U.S. user data will be securely stored in a purpose-built cloud environment within the United States, overseen by Oracle.
The divestiture also includes rigorous monitoring of software updates, the algorithm, and data flows. It mandates that all recommendation models, including algorithms utilizing U.S. user data, be retrained and monitored by trusted American security partners. This ensures that content accessed by U.S. users remains free from inappropriate manipulation.
To facilitate this transition, the Executive Order instructs the Attorney General not to take any action to enforce the Act for 120 days, providing ample time for the divestiture to be finalized.
President Trump’s actions have created a viable solution for the 170 million Americans who actively engage with TikTok, allowing users to safely enjoy the platform while confidently accessing content from around the globe, knowing their data is secure within the United States. American content creators rely heavily on TikTok for their livelihoods, utilizing the platform to cultivate audiences, showcase their talents, and generate income in an increasingly digital economy.
Moreover, American businesses—ranging from small enterprises to large corporations—depend on TikTok’s expansive reach for advertising, customer engagement, and driving economic growth. Through this strategic deal, President Trump has not only preserved TikTok as an operational entity but also resolved significant national security issues by fostering new American investment and control.
Maintaining TikTok’s presence in the U.S. is expected to generate an impressive $178 billion in economic activity over the next four years, thereby sustaining thousands of jobs and businesses across the country.
President Trump has consistently demonstrated his ability to negotiate deals that prioritize America and its citizens. His extensive track record in national security and foreign policy includes significant achievements such as the Abraham Accords, the replacement of NAFTA with USMCA, and the establishment of the Phase One China Trade Deal.
Since returning to office, President Trump and his Administration have successfully secured the release of 72 detained Americans abroad. His bold trade strategy has produced historic agreements with key trading partners, including the European Union, United Kingdom, Indonesia, Philippines, South Korea, and Vietnam, unlocking unprecedented investments in the United States and enhancing market access for American goods.
Furthermore, President Trump's pressure has led Panama to withdraw from China’s Belt and Road Initiative, a scheme often criticized as a form of debt-trap diplomacy intended to increase Chinese influence over developing nations. President Trump stated, “And if we can save it, I think that would be a very good thing. And I think it would be economically good for America.”
