Trump expected to sign deal to keep TikTok operating in the U.S.

President Trump is set to sign a deal on Thursday that will allow TikTok to continue operating in the U.S., as per a White House official. The deal, which the administration brokered, is expected to be declared a “qualified divestiture” by Mr. Trump, satisfying a law passed by Congress that requires TikTok’s parent company, ByteDance, to sever ties with the app or face a ban.

The agreement, which will be finalized after the president’s fifth executive order pushing back enforcement of the law by 120 days, involves transferring TikTok’s content recommendation algorithm to run solely on the data of its U.S. user base. Cloud-computing firm Oracle will provide top-notch security by hosting Americans’ user data and reviewing the app’s code to ensure it is secure and the algorithm is behaving appropriately. Additionally, a consortium of American investors, including Oracle, will have a stake in TikTok.

Despite the White House’s confidence that the proposal complies with all relevant laws and policies, China’s response to the deal has been more ambiguous. Lawmakers have long expressed concerns about TikTok’s potential risks to national security, given the vast amount of Americans’ data collected by the app and the possibility of influence operations by the Chinese government.

However, some critics argue that the deal may not go far enough, particularly in relation to TikTok’s algorithm. Republican Rep. John Moolenaar of Michigan, chairman of the House China Committee, raised concerns about the reported licensing deal potentially allowing continued control or influence by the Chinese government. The law prohibits any operational relationship between the new owners and ByteDance, including cooperation on the algorithm and data sharing.

Ultimately, the president has the authority to determine what constitutes a “qualified divestiture,” with the power to decide if the relevant foreign adversary-controlled application is no longer under foreign adversary control. The administration plans to engage with lawmakers to demonstrate the benefits of the deal for Americans, emphasizing the app’s safety and security.

During the legal battle over the law, TikTok’s lawyers argued that the app would undergo significant changes if forced to cut ties with ByteDance, as the new owner would need to rebuild the algorithm, a process that could take years. The details of the finalized deal are eagerly awaited, as stakeholders assess its implications for national security and user privacy.