On Friday evening, President Donald Trump signed an executive order that paves the way for TikTok’s drastic restructuring or possible removal from the United States. This is a notable change for the widely used social media platform. The order supports a plan for TikTok to continue doing business in the country. To do so, it needs to move into American ownership. Nothing about this deal remains clear. Indeed, both China and ByteDance — TikTok’s parent company — have denied those details.
The executive order that President Trump signed to address these national security concerns. More narrowly, it examines the app’s data practices and its ties to China. The proposal reportedly calls for TikTok to be sold to an American company. This action seeks to bring TikTok into compliance with U.S. regulations and safeguard American user data from being accessed by foreign adversaries. This decision is yet another indication of rising tensions between the US and China on technology and data privacy matters.
Despite the significance of the executive order, the lack of confirmation from both Beijing and ByteDance raises questions about the feasibility of such a transition. While global talks continue, the Chinese government has not officially accepted any deal to divest TikTok’s ownership. ByteDance’s response has been to continue the silence from HQ. This silence continues to leave stakeholders, users, and the public alike unsure about the platform’s future in the U.S. market.
With President Trump’s approval of the modified proposal, that lays a possible path forward for TikTok. It has brought to the fore the challenges that can accompany cross-border technology transactions. Industry experts agree that the success of this plan will all come down to who’s seated at the negotiating table. Their willingness to compromise on ownership structures and operational controls is key.
While discussions continue, users and businesses that have built communication and marketing strategies around TikTok are still waiting to know what will happen. The concept has garnered more than 4 million users across the U.S. This huge audience means any change or possible service interruption to its service is a very big deal for the marketers and content creators that depend on its unique advantages.
