Trump Signs Executive Order Advancing TikTok Deal, But Completion Still Awaits
President Donald Trump signed an executive order Thursday that moves forward the proposed sale of TikTok’s U.S. operations to a consortium of primarily American investors. While the order represents a key procedural milestone, the deal remains incomplete and subject to regulatory approvals from both the United States and China.
During the signing, Trump stated that Chinese President Xi Jinping had given his approval for the deal during a recent phone call. “I had a very good talk with President Xi,” Trump said. “We talked about TikTok, and he gave us the go-ahead.”
However, Beijing has yet to publicly confirm Xi’s endorsement or provide updates following last week’s trade talks in Madrid, where Chinese officials acknowledged reaching a “basic framework consensus” on TikTok.
The executive order affirms that the proposed transaction qualifies as a divestiture under the bipartisan law passed last year, which mandates ByteDance to divest at least 80% of its U.S. assets to non-Chinese entities. Enforcement of the law has been delayed multiple times, and the White House now plans to extend the pause by another 120 days to allow time for regulatory review and documentation.
The deal includes TikTok’s U.S. operations, a copy of its algorithm, and potentially ByteDance’s other platforms such as Lemon8 and CapCut. ByteDance is expected to retain no more than a 20% stake.
The new joint venture will be majority-owned and governed by American investors, including Oracle, Silver Lake, Dell CEO Michael Dell, and Fox Corp. chairman Lachlan Murdoch. Oracle will oversee data privacy and algorithm management.
Due to Chinese export controls on TikTok’s algorithm, ByteDance may license the technology to the U.S. venture pending approval from Chinese regulators.
Vice President JD Vance, who led negotiations, stated the joint venture will be valued at approximately $14 billion. Previous estimates for TikTok’s U.S. assets ranged from $20 billion to $100 billion, depending on algorithm access.
“This deal ensures Americans can continue using TikTok with greater confidence in their data security,” Vance said. “It’s about protecting national interests while preserving user experience.”
Despite progress, questions remain. Will users need to download a separate U.S. version of TikTok? And how will algorithm control by investors — some of whom are Trump allies — affect content moderation?
Trump addressed concerns with characteristic candor: “If I could make it 100% MAGA, I would, but it’s not going to work out that way. Everyone will be treated fairly.”
Vance added, “Content decisions should reflect business and user interests, not political agendas.”
Analysts suggest China is leveraging TikTok — a low-priority item in trade talks but highly valued by Trump and American users — to gain broader concessions.
The deal also sets the stage for a potential in-person meeting between Trump and Xi at next month’s APEC Summit in South Korea, following their recent phone discussion.
This article has been updated to reflect new developments and context.
SOURCE CREDIT: https://www.cnn.com/
