The United States and China have outlined a framework for TikTok’s U.S. operations that would create a new American-run entity with a seven-member board—six Americans and one ByteDance nominee—while keeping the app available to its 170 million U.S. users. The White House signaled another 120-day extension of the pause on enforcement of the 2024 divestiture law to finalize the deal, aiming for completion in April.
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Under the agreement, TikTok’s American user data would reside on U.S. cloud infrastructure managed by Oracle, and the content-recommendation algorithm would be “secured, retrained, and operated” in the United States, outside ByteDance’s control. U.S. supervision would review and rebuild the algorithm with domestic data, while preserving Americans’ ability to interact with global content.
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Ownership would shift so that TikTok’s U.S. assets are majority-held by American investors, governed by a board with national-security and cybersecurity credentials. ByteDance would retain less than 20% of the joint venture and may license certain technology, while appointing one director. Lawmakers, however, are pressing for clarity on whether this structure meets Congress’s requirement for a full divestiture.
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Politically, the deal lands amid broader U.S.-China tensions and domestic scrutiny over data security and influence operations. Supporters say it reduces national-security risk without banning a hugely popular platform; critics warn that compliance, enforcement, and true autonomy from Beijing will hinge on the fine print, rigorous audits, and sustained oversight.
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Next steps include formalizing governance, certifying technical controls, and satisfying legal tests under the 2024 law. With timelines tied to the new extension, stakeholders across government, industry, and civil society will parse the agreement’s details to ensure user data protections, platform integrity, and transparency—while avoiding a disruptive shutdown.
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