Trump Signs Executive Order Approving US-China TikTok Deal
In a significant development, President Donald Trump signed an executive order on Thursday, declaring that a deal to find a new owner for social media app TikTok in the United States is done and has received the blessing of China's President Xi Jinping. According to sources, the deal involves a group of investors buying TikTok's US operations to create a new company valued at $14 billion (approximately £10.5 billion).
The executive order was signed after Trump claimed that the planned deal met the requirements of a law that had called for banning the app in the US unless it was sold by its Chinese parent company ByteDance. In comments in the Oval Office, Trump and Vice-President JD Vance said that the new company would be valued at $14 billion and would operate independently from ByteDance.
According to BBC Technology, the deal is seen as a significant step towards resolving the ongoing tensions between the US and China over TikTok's ownership. The app has been under scrutiny in recent months due to concerns over data security and censorship. Trump had previously threatened to ban TikTok in the US unless its Chinese parent company sold it.
The new company, which will be created by a group of investors, is expected to operate independently from ByteDance and will be valued at $14 billion. According to BBC Business, this valuation is significantly higher than previous reports, which had estimated the value of TikTok's US operations to be around $10 billion.
In a statement, Trump said that the deal was a "big win" for the US and would help to protect American users' data. However, experts have raised concerns over the potential implications of the deal on data security and censorship.
"This is a significant development in the ongoing saga of TikTok's ownership," said Dr. Emily Chen, a technology expert at Harvard University. "While the deal may address some of the concerns over data security, it also raises questions over the potential for censorship and the impact on free speech."
The current status of the deal is that it has received the blessing of China's President Xi Jinping, according to Trump. However, the details of the agreement are still unclear, and experts have raised concerns over the potential implications of the deal.
As the situation unfolds, one thing is clear: the future of TikTok in the US is uncertain. The new company will operate independently from ByteDance, but its ownership structure and valuation remain unclear. As Trump said, "This is a big win for the US, and we're going to make sure that American users' data is protected."
Background
TikTok has been under scrutiny in recent months due to concerns over data security and censorship. The app has been accused of collecting user data without consent and censoring content that is critical of China's government.
In August, Trump signed an executive order calling for the sale of TikTok's US operations by ByteDance. The deadline for the sale was set at September 20, but it was later extended to November 12.
Next Steps
The next steps in the deal are unclear, but experts expect that the new company will be created and valued at $14 billion. However, the ownership structure and valuation of the company remain uncertain.
As Dr. Chen said, "This is a significant development, but we need to see more details about the agreement before we can fully understand its implications."
This story was compiled from reports by BBC Technology and BBC Business.
