In a notable development in the ongoing discussions surrounding TikTok, President Donald Trump has officially signed an executive order that allows the popular social media app to continue its operations in the U.S. In his statement, he emphasized that this move meets the national security concerns outlined under current legislation.
Previously, President Joe Biden enacted a law demanding that the Chinese company ByteDance sell its assets associated with TikTok to a U.S.-based company by the beginning of the year, or face an imminent national ban. However, Trump's administration has consistently granted extensions allowing the app to function while negotiations for its sale take place.
While specific details about the proposed sale remain murky, Trump stated that Chinese leader Xi Jinping has given his approval for the ongoing negotiations. The potential ramifications of any alterations to the TikTok platform could significantly alter how younger audiences in America consume media.
Current statistics suggest that around 43% of American adults under 30 get their news primarily from TikTok, surpassing traditional platforms such as YouTube, Facebook, and Instagram, according to a report by the Pew Research Center.
Under the emerging agreement, TikTok will undergo a structural transition into a new joint venture in the U.S., with a substantial ownership stake going to American investors including Oracle and Silver Lake Partners.
Concerns have been raised regarding the connection of some of these investors to former President Trump, including prominent figures like Larry Ellison and Rupert Murdoch, prompting discussions about potential political influences shaping the platform's future.
Trump's initial approach to TikTok was combative, aiming to restrict its impact due to fears of data collection and potential access by the Chinese Communist Party to American users’ information. However, he has since pivoted toward a more favorable stance, recognizing the importance of the platform in engaging with young voters ahead of the 2024 elections.
The final structure of TikTok's overhaul and how it will compare to the global version of the app remains to be seen. Analysts warn that significant changes, especially regarding media content delivery, could alienate the platform's existing user base.
China's willingness to negotiate on this issue marks a notable shift in the broader U.S.-China trade relationship, potentially indicating a desire for improved negotiations in various economic sectors while maintaining technological competitiveness.