President Trump Poised to Sign Executive Order Approving Compromise with China
President Donald Trump is set to approve a landmark deal this week that will grant a consortium of American investors greater control over TikTok’s U.S. operations, a senior White House official told the Daily Caller News Foundation. The compromise, reached after intense negotiations, aims to satisfy both U.S. and Chinese legal requirements while addressing long-standing national security concerns.
The core of the agreement centers on the platform’s powerful recommendation algorithm. Under the terms, a “copy” of the algorithm will be created for the new U.S. venture, which will then be “fully inspected and retrained” by tech giant Oracle.
This process will use U.S. user data and be securely stored on Oracle’s servers in the United States. The new American entity will “operate and control” the algorithm, ensuring that it is not subject to foreign influence.
A White House official described the algorithm as a “mathematical formula” and emphasized that by moving it to the U.S. and running it on U.S. data, the government is confident the app will behave “appropriately and is secure.”
Ownership and Governance
The deal mandates that TikTok’s China-based parent company, ByteDance, will retain less than 20% equity in the U.S. operations. The remaining shares will be held by a mix of new and existing investors, including “a significant number of new investors who have no affiliation with ByteDance.”
President Trump previously indicated that prominent figures such as Fox Corp. founder Rupert Murdoch and his son Lachlan Murdoch are likely to be involved in the deal, along with Oracle’s Larry Ellison and Michael Dell.
The new entity will not have any government-appointed board members or a “golden share,” and the U.S. government will not hold an equity stake. This framework is designed to protect user data and ensure the platform’s security without direct government ownership or oversight.
The president is expected to sign an executive order later this week to formalize the agreement, which will also extend the enforcement pause for 120 days.
This extension provides the company and investors with the necessary time to finalize all documents and complete regulatory reviews in both the U.S. and China. The official stated that this is “another outstanding deal on behalf of the American people, one that saves TikTok for over 170 million U.S. users while making sure that it’s safe and secure.”
READ: Trump Extends TikTok Deadline, Pledges U.S. Control Over Algorithm
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