TikTok may have dodged a US ban but there still seem some unresolved issues about its algorithm. Recently, TikTok CEO Shou Zi Chew announced that the company had signed binding agreements to spin its US operations into a new joint venture with American investors set to close on January 22, taking a major step toward avoiding a US ban. However, things don’t seem to be as simple for TikTok as yet. In 2024, the US Congress approved a nationwide ban on Tiktok, unless ByteDance sold its controlling stake by January 19, 2025. Since returning to White House, President Donald Trump has extended that deadline five times, most recently to January 23, 2026.
The Chinese government has now sent a message to the US government on TikTok deal. According to a report in Reuters, Chinese commerce ministry spokesperson He Yongqian said when asked about the hand-over of TikTok’s US operations that the Chinese government would like to see companies reach solutions that comply with Chinese laws and regulations and balance the interests of all parties. “It is hoped that the U.S. side will work with China in the same direction, earnestly fulfill its corresponding commitments, provide a fair, open, transparent and non-discriminatory business environment for the continuous and stable operation of Chinese enterprises in the US,” Chinese ministry spokesperson told a press conference.
TikTok deal with US investors
Last week, TikTok’s Chinese owner, ByteDance, signed binding agreements to hand control of the short video app’s US operations to a group of investors, including Oracle. Under the new arrangement, a consortium of American and allied investors, including Oracle, Silver Lake, and Abu Dhabi-based MGX, will hold half of the US entity. Affiliates of existing ByteDance investors will hold 30.1 per cent, while ByteDance will retain 19.9 per cent.In an internal memo, TikTok CEO Chew said that the deal effectively averted a looming nationwide ban and secured the platform’s future for its 170 million American users. The new entity, named TikTok USDS Joint Venture LLC, will come into effect on January 22. “The US joint venture will be responsible for US data protection, algorithm security, content moderation and software assurance,” Chew said. “It will also have the exclusive right and authority to provide assurances that content, software and data for American users is secure.”
