United States approves plan to restructure TikTok to address national security concerns
Under the deal, TikTok’s U.S. operations will be run by a new American-led joint venture, with strict safeguards on data storage, algorithms, and oversight. President Trump’s executive order pauses enforcement of earlier bans for 120 days to complete the divestiture.
On 25 September 2025, US President Donald J. Trump signed an executive order approving a plan that allows TikTok to continue operating in the United States under new ownership rules. The decision comes after years of debate over whether the popular video-sharing app, owned by China-based company ByteDance Ltd., poses a risk to US national security.
The new plan, known as a ‘qualified divestiture,’ will transfer TikTok’s US operations to a joint venture based in the United States. This venture will be majority-owned and controlled by American investors, with ByteDance and its affiliates holding less than 20 percent. A new board of directors will oversee the company, and strict safeguards will be put in place to ensure the protection of US user data and the independence of TikTok’s algorithms.
Under the agreement, TikTok’s recommendation systems and content moderation will be controlled within the United States. Sensitive American user data must be stored by a US-based cloud provider, and “trusted security partners” will monitor software updates, data flows, and algorithm training. These measures are designed to prevent any influence or access by foreign adversaries.
The executive order temporarily halts enforcement of a law passed by Congress earlier this year that sought to ban ‘foreign adversary controlled applications’ like TikTok. Previous executive orders had delayed enforcement, and this new order provides additional time, 120 days, for the divestiture to be completed. During this period, the Department of Justice will not impose penalties on app stores or service providers that continue to support TikTok.
The order also updates earlier rulings concerning ByteDance’s 2017 acquisition of Musical.ly, which was merged into TikTok. It directs the Committee on Foreign Investment in the United States (CFIUS) to finalise agreements with new investors to ensure compliance with national security requirements.
Officials emphasise that the changes are intended to protect Americans’ data while allowing the estimated 170 million US TikTok users, as well as businesses and creators who rely on the platform, to continue using it. The President reserved the right to issue further orders if additional steps are needed to safeguard national security.
