KEY POINTS
- WSJ reports White House ready to endorse new ownership framework
- ByteDance stake to shrink, U.S. investors to gain majority control
- American user data to be secured on U.S. servers under Oracle oversight
- Move responds to law requiring foreign tech divestment or ban
ISLAMABAD: US President Donald Trump is expected to approve a deal later this week, enabling TikTok to continue operating in the United States under new ownership and data security rules, the Wall Street Journal reported on Monday, citing senior administration officials.
According to the WSJ report, Trump will issue an executive order endorsing a framework that reduces Chinese parent company ByteDance’s stake, thus control, in the popular short-video platform while transferring majority control to U.S. investors, including Oracle and other backers.
The agreement would also require that data belonging to American TikTok users be housed exclusively on U.S. servers and monitored by a board with national security and cybersecurity credentials. Oracle is expected to play a leading role in safeguarding the platform’s algorithms and technology.
The WSJ noted that Trump’s order would aim to satisfy the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), a law passed in 2024 that compels apps deemed controlled by adversarial states to either divest their U.S. operations or face a nationwide ban. TikTok had been given multiple extensions to comply.
While the U.S. administration views the deal as a way to “supercharge innovation” without compromising national security, questions remain about Beijing’s response. Analysts told Reuters and AP that China still needs to approve ByteDance’s reduced role, and the level of control ceded over TikTok’s proprietary algorithm could become a sticking point.
If confirmed, the arrangement would mark one of the most significant shifts in global tech governance since the US restrictions on Huawei in 2019, underscoring how geopolitical rivalry is reshaping digital platforms worldwide.
Background
The dispute over TikTok dates back to the Trump administration’s earlier push to curb Chinese control over apps widely used in the US.
Washington has long voiced concerns that ByteDance, a Beijing-based company, could be compelled under Chinese law to share data with the parent state, posing risks to privacy and national security.
In 2024, Congress passed the PAFACA, which gave foreign-owned apps until 2025 to divest their U.S. operations or face a nationwide ban.
Trump’s expected executive order is intended to formally certify that the new TikTok deal complies with this law. However, final approval may still depend on Beijing’s stance on ByteDance’s reduced role.
Therefore, questions remain about how much control ByteDance will retain over TikTok’s core algorithm and whether China will sign off. TikTok’s operations and data ownership in the US are the latest battlefield of the ongoing Sino-US trade war.
