ALBAWABA- In a high-profile move blending national security concerns with economic strategy, President Donald Trump signed an executive order approving a $14 billion deal to divest TikTok’s U.S. operations from Chinese parent ByteDance.
The transaction transfers operational control and U.S. user data to American hands, averting a potential nationwide ban affecting the app’s 170 million U.S. users.
Under the agreement, ByteDance retains a 20% minority stake and licenses its proprietary recommendation algorithm to the newly formed “TikTok USA Inc.” for an undisclosed fee.
The remaining 80% is held by a U.S.-led consortium, including Oracle (40%), Walmart (20%), and private investors such as Blackstone and a group linked to former Commerce Secretary Wilbur Ross. The consortium plans to invest in U.S.-based data centers, content moderation, and AI development.
Trump described the deal as a triumph of his “America First” trade and tariff strategy, linking heavy duties on Chinese imports, electronics and semiconductors raised to 60%, to Beijing’s concessions on TikTok.
He asserted that the agreement preserves U.S. national security while allowing ByteDance to maintain a “face-saving” minority stake.
Regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) and China’s commerce ministry is expected within 60 days. Analysts note the transaction could set a precedent for U.S.-China tech decoupling, balancing national security, investor interests, and employment—TikTok USA is projected to create roughly 10,000 U.S. jobs.
