Trump Executive Order Gives US Majority Stake in TikTok

TaiwanPlus News

TikTok will continue operating in the United States after US President Donald Trump approved a deal making its US business majority American-owned. The agreement means ByteDance, the app’s Chinese parent company, and other Chinese investors will reduce their stake to below 20%. American investors will control TikTok’s US operations, including its algorithm, in line with a national security law. The move is meant to ease concerns in Washington that Beijing could use the platform to spread propaganda.

Transcript

00:00Social media app TikTok will stay alive in the U.S. after President Donald Trump signed

00:05an executive order creating a new joint venture to run the app's business there.

00:11There was some resistance on the Chinese side, but the fundamental thing that we wanted to

00:14accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure

00:18that we protected Americans' data privacy as required by law, both because it's the

00:23right thing to do, but also because it's a legal requirement of the law that was passed

00:26last year by Congress.

00:27The deal meets the requirements of a national security law forcing TikTok's Chinese parent

00:33company ByteDance to sell its U.S. operations or face a ban.

00:38Under the plan, American investors will control the majority of TikTok's U.S. business, including

00:43its powerful algorithm.

00:46ByteDance and its Chinese backers will hold less than 20%.

00:50Analysts say the move eases bipartisan concerns in Washington that Beijing could use the app

00:56to spread propaganda.

00:57One of the things that this deal does do is take away the storage of data away from ByteDance

01:06and keep it in the U.S.

01:07And I think that that alleviates the larger concern over data breach or data protection or espionage

01:16or any of those items that really were part of the larger argument for this divestiture law.

01:24Vice President J.D.

01:24Vance says the new U.S.

01:26company will be worth around 14 billion U.S. dollars.

01:30Vance says the new U.S.

01:34The new U.S.

01:34company will be worth around 14 billion U.S. dollars.

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