Trump Governance Reaches TikTok Deal, Averting Ban and Projecting $178 Billion Economic Boost
WASHINGTON - The Trump administration has brokered an agreement with TikTok that will avert a nationwide ban of the popular video-sharing app, officials announced Saturday.The deal centers around the creation of a new U.S.-based joint venture, controlled by American investors and overseen by the U.S. government, to address national security concerns surrounding the app’s Chinese ownership.
The agreement, a result of “very arduous negotiations,” will transfer TikTok’s U.S. operations to this new entity, with a meaningful stake held by American investors. White house spokesperson Caroline Levitt stated that TikTok is projected to generate up to $178 billion in economic activity in the U.S. over the next four years. The deal comes after Congress passed legislation prohibiting TikTok from operating in the U.S. if not sold to an American company, prompting negotiations with ByteDance, TikTok’s parent company, over the past several months.
U.S. software company Oracle will be responsible for the security of U.S. user data on the platform, independently monitoring safety and security measures. Furthermore, TikTok’s content suggestion algorithm will be subject to U.S. scrutiny, with algorithms being “learned and studied in the United States,” according to levitt.
President Trump is expected to sign an administrative order later this week to legally validate the agreement and extend the current sanctions grace period, allowing investors and TikTok to finalize transaction documents. The White House anticipates the deal will be completed within 120 days of the order’s signing.
The concerns surrounding TikTok stemmed from fears that ByteDance could be compelled to share user data with the chinese government or manipulate the platform for propaganda purposes.The agreement aims to mitigate thes risks by ensuring U.S. control and oversight of TikTok’s American operations.
