President Donald Trump has officially ordered TikTok to sell its U.S. operations to American and international investors, a move backed by Chinese President Xi Jinping. The decision marks the culmination of years of legal and political battles over national security concerns. TikTok, owned by Beijing-based ByteDance, became a popular platform among American teenagers and young adults, amassing 170 million U.S. users by the late 2010s. Its rapid growth raised alarms about potential data access by the Chinese government, prompting successive administrations to scrutinize its operations.
Trump initially attempted to ban TikTok during his first term but faced legal hurdles, including a court ruling that blocked the move. In 2022, TikTok was banned from U.S. government devices, and in 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act, mandating a divestiture by January 2025. Trump delayed the deadline, and now the order has been extended to January 20, 2026. The executive order designates the move as a “qualified divestiture” under the 2024 law, banning any operational ties with ByteDance. The new company will be controlled by a mix of American and global investors, with Trump claiming Xi’s approval to proceed.
The valuation of the U.S. TikTok business has been a point of contention, with Vice President J.D. Vance estimating it at $14 billion, significantly lower than some analyst projections. Trump has named several high-profile investors, including Michael Dell and Rupert Murdoch, as key players in the deal. The move ensures TikTok’s algorithm will be under U.S. control, with oversight from American allies. While Trump claims Xi endorsed the action, Beijing has previously criticized past U.S. attempts as forms of economic coercion. Despite this, Trump asserts that the administration remains committed to maintaining TikTok’s operations while protecting American data privacy.