Today, President Donald J. Trump signed an Executive Order that saves TikTok from being banned while protecting the national security of the United States.
President Trump has ruled that the divestiture outlined in a proposed framework agreement, under which the US app TikTok would be operated by a new joint venture company based in the United States, constitutes a “qualified divestiture.”
The new company will be majority-owned by American investors, will operate in the US with a board of directors that will have national security and cybersecurity credentials, and will be subject to strict rules to protect Americans' data and our national security.
ByteDance will own less than 20% of the shares, as required by law, will appoint only one of the seven board directors and will be excluded from the company's security committee.
Oracle—one of the leading US technology companies—will act as TikTok's security provider, independently monitoring and ensuring the security of all operations in the US.
The proposed divestment resolves national security concerns and complies with the law. Protecting Americans from Foreign Adversary Controlled Applications Act, removing control of TikTok in the US from China.
The divestment transfers the operation of the algorithm, code, and content moderation decisions to the new consortium.
It prohibits the storage of sensitive data of American users in a way that could put it under the control of a foreign adversary. All data will be stored in a trusted, secure and purpose-built cloud environment in the US, operated by Oracle.
Divestment involves intensive monitoring of software updates, algorithm and data feeds, and requires all recommendation models (including algorithms) that use US user data to be retrained and monitored by trusted US security partners. This ensures that US content remains free from malicious manipulation.
The Decree instructs the Attorney General not to enforce the law for 120 days, so that the divestment can be completed.
SECURING BENEFITS FOR AMERICANS
President Trump has found a solution for the 170 million Americans who use TikTok, ensuring that users can safely enjoy the same global TikTok experience and view content from around the world, knowing that their data is safe in the United States.
American content creators rely on TikTok for their livelihoods, using it to build audiences, share their talents, and generate income in an increasingly digital economy.
At the same time, American businesses—large and small—depend on TikTok's enormous reach for advertising, customer engagement, and economic growth.
Through this agreement, President Trump found a way to keep TikTok running while resolving national security concerns with new American investment and oversight.
Keeping TikTok going will generate $178 billion in economic activity in the US over the next four years and support thousands of jobs and businesses.
THE ART OF AGREEMENT
President Trump has proven time and again his ability to make deals that put America and its citizens first.
He has a long track record of successes in national security and foreign policy, such as adopting the Abraham Accords, replacing NAFTA with the USMCA, and reaching the Phase One Agreement with China.
Since returning to office, President Trump and his administration have secured the release of 72 American detainees abroad.
His aggressive trade strategy has brought historic agreements with major trading partners—including the European Union, the United Kingdom, Indonesia, the Philippines, South Korea, Vietnam, and others—unlocking unprecedented investment in the United States and expanding market access for American products.
His pressure led Panama to withdraw from China's "One Belt, One Road" Initiative, a "debt diplomacy" scheme through which the Chinese Communist Party seeks to expand its influence in developing countries.
President Trump: "And if we can save it, I think it's going to be a very good thing. And I think it's going to be economically beneficial for America."
photo by antonbe, https://pixabay.com
