Washington: President Donald Trump is set to sign an executive order later this week confirming that the proposed divestiture of TikTok’s U.S. operations from its Chinese parent company, ByteDance, meets the requirements of a 2024 law mandating that the app’s American assets be sold or shut down by January 2025. This executive action signals a major step toward resolving one of the most contentious issues in U.S.-China technology relations.
The 2024 legislation, passed by Congress, had set a firm deadline for the sale or closure of TikTok in the United States to address national security concerns over the potential access of American user data by Chinese authorities. In response, President Trump temporarily delayed enforcement of the law until mid-December to allow time to finalize the divestiture, coordinate American investors, and ensure full compliance with legislative requirements. The upcoming executive order formally validates the proposed deal as meeting the law’s criteria.
Under the proposed agreement, a consortium of American investors including Oracle, Silver Lake, and Andreessen Horowitz would acquire roughly 80% of TikTok’s U.S. operations. ByteDance would retain less than 20% ownership. A new U.S.-based entity would manage TikTok operations, hosting American user data on Oracle-managed infrastructure, while a board of directors with national security expertise would oversee compliance and operations. These measures aim to address longstanding security concerns while keeping TikTok available to its 170 million American users.
While the deal requires final approvals from both U.S. and Chinese authorities, White House officials have expressed confidence that Beijing has given its tacit consent, and no further negotiations are expected. Analysts note that the agreement represents a rare positive development in U.S.-China relations, which have been strained over trade, technology, and security issues.
The signing of the executive order is expected later this week, marking a crucial milestone toward finalizing the TikTok divestiture. If completed, it would resolve months of political and legal uncertainty surrounding the popular app, providing clarity for both American users and the companies involved. Observers say the move could also set a precedent for handling foreign-owned technology platforms operating in the U.S. in the future.