President Donald Trump signed an executive order on Thursday stating that his plan to sell TikTok’s U.S. operations to American and international investors would meet the national security requirements outlined in a 2024 law.
Vice President JD Vance said the new U.S.-based company would carry a valuation of around $14 billion, significantly lower than some analyst projections for the short video platform.
Trump also postponed until January 20 the enforcement of the law that would otherwise ban the app unless its Chinese parent sells the U.S. business. The delay is intended to allow time to separate TikTok’s American assets from the global platform, bring in U.S. and international investors, and secure Beijing’s approval.
The order indicates progress in the divestment process, but key details remain unresolved, particularly concerning TikTok’s recommendation algorithm. The order specifies that the algorithm would be retrained, monitored by security partners, and placed under the control of the new U.S.-based joint venture.
Vance noted there had been some resistance from China but emphasized that the U.S. goal was to preserve TikTok’s operations while protecting American user data. Trump added that Chinese President Xi Jinping had signaled his approval of the plan, following a direct conversation between the two leaders.
China’s foreign ministry reiterated on Friday that it supports enterprises conducting negotiations under market principles, provided outcomes comply with Chinese law and balance mutual interests. Spokesperson Guo Jiakun expressed hope that the U.S. would ensure a fair and non-discriminatory environment for Chinese companies investing in America.
TikTok did not immediately respond to Trump’s order. The app, which has 170 million U.S. users, has played a notable role in Trump’s political presence. He has 15 million followers on his personal TikTok account, while the White House recently launched an official account.
Source: Reuters
