Key points
- President Trump is expected to sign an executive order approving the divestiture deal for TikTok.
- The deal aims to separate TikTok’s US operations from its Chinese owner, ByteDance.
- The US believes China has approved the deal and doesn’t plan further negotiations.
- The executive order sidesteps a 2024 law that mandates the shutdown of TikTok.
President Donald Trump is poised to sign an executive order this week that formally approves a deal to divest TikTok’s U.S. operations from its Chinese parent company, ByteDance. A White House official confirmed this development on Monday, stating that the agreement meets the requirements outlined in a 2024 law that threatened a complete ban of the popular short-form video app in the United States.
This move effectively circumvents the impending January 2025 deadline set by Congress for the sale of TikTok’s US assets. The administration’s confidence in the deal’s success stems from its belief that China has already given its approval.
While the US expresses confidence in China’s approval, the official acknowledged the need for further procedural steps. Both the US and Chinese sides must complete the necessary paperwork before the deal is finalized.
This seemingly minor hurdle underscores the complexities inherent in navigating the intricate geopolitical landscape surrounding the transaction. The deal has been the subject of intense negotiations between Washington and Beijing, reflecting the broader tensions in the ongoing US-China trade war.
The Trump administration’s decision represents a significant victory in its efforts to address national security concerns related to TikTok’s data handling practices and potential influence from the Chinese government.
The divestiture process aimed to ensure that the US operations of the platform fall under American ownership and oversight, mitigating potential risks of data breaches and censorship. The 170 million US users of TikTok will thus continue to have access to the platform under this new ownership structure.
The successful conclusion of this deal marks a rare instance of cooperation amidst the escalating trade tensions between the US and China. The agreement suggests a potential path forward for resolving complex international disputes, offering a glimmer of hope for de-escalation in other areas of contention.
However, the need for additional paperwork indicates that the process is far from complete, and continued vigilance will be necessary to ensure full compliance.
