President Donald Trump signed an executive order on Thursday stating that his plan to sell TikTok’s U.S. operations—currently owned by China—would meet the national security requirements outlined in a 2024 law.
Vice President JD Vance said the new U.S.-based company will be valued at approximately $14 billion, placing the price of the popular short-video platform below some analyst projections.
Trump postponed enforcement of the law, which bans the app unless its Chinese owners divest it, until January 20. The delay allows time to separate TikTok’s U.S. assets from the global platform, secure American and other international investors, and obtain approval from the Chinese government.
The release of the executive order signals progress on the sale of TikTok’s U.S. operations, though many details remain unresolved, including how the U.S. entity will manage TikTok’s key asset, its recommendation algorithm.
“There was some resistance on the Chinese side, but our primary goal was to keep TikTok operational while ensuring Americans’ data privacy as required by law,” Vance told reporters during an Oval Office briefing.
Trump’s order specifies that the algorithm will be retrained and overseen by the U.S. company’s security partners, with control of its operation vested in the new joint venture.
Trump stated that Chinese President Xi Jinping had expressed approval of the plan. “I spoke with President Xi, we had a good conversation, I explained our actions, and he said to go ahead,” Trump said.
The Chinese embassy in Washington did not immediately respond to requests for comment, and TikTok has yet to comment on Trump’s announcement.
Trump has credited TikTok, which counts 170 million U.S. users, with contributing to his reelection success. He maintains 15 million followers on his personal TikTok account, and the White House launched its own official account last month.
