President-elect Donald Trump has announced plans for TikTok, the Chinese-owned short-form video app, to be at least 50% owned by U.S. investors. Speaking at a rally in Washington on the eve of his inauguration, Trump emphasized that TikTok’s value in the U.S. depends on government approval, stating, “TikTok is worth nothing, zero, without approval. If you approve, they’re worth like a trillion dollars.”
Trump outlined his vision for a joint venture between TikTok and U.S. investors, asserting that the app’s future hinges on compliance with U.S. national security concerns.
On Sunday, TikTok experienced a 12-hour service disruption linked to a new law requiring its Chinese parent company, ByteDance, to divest its controlling stake or face a U.S. ban. Service was restored after Trump assured TikTok’s service providers they would not face penalties.
In a statement, TikTok thanked Trump for “providing necessary clarity” and committed to working on a long-term solution to remain operational in the U.S.
Trump also announced plans to issue an executive order on his inauguration day to extend the timeline for compliance, ensuring more time for a deal to protect national security. He confirmed this order would shield service providers from liability during negotiations.
What You Should Know
- TikTok and National Security: TikTok, owned by ByteDance, has been at the center of U.S. national security debates due to its data practices and alleged ties to the Chinese government.
- Bipartisan Legislation: A bipartisan bill signed by President Biden in 2024 required ByteDance to divest its stake in TikTok within six months or face a U.S. ban.
- Economic Significance: TikTok has over 170 million American users and supports 7 million small businesses, highlighting its economic importance.
- Service Disruption: TikTok experienced a 12-hour service disruption due to the new law, but service was restored after assurances from Trump.
- Executive Order: Trump plans to issue an executive order extending the compliance timeline and shielding service providers during negotiations.
This marks a pivotal moment in U.S.-China tech relations as TikTok navigates its future in the United States under Trump’s administration.
