President-elect Donald Trump has declared his intention for Chinese-owned short-form video app TikTok to be at least 50% owned by U.S. investors.
Trump made this statement during a rally in Washington on Sunday, the eve of his inauguration.
Addressing his supporters, Trump emphasized that TikTok’s value in the U.S. depends on government approval.
“But let the United States of America own 50 per cent of TikTok,” he said.
“TikTok is worth nothing, zero without an approval. If you do approve, they’re worth like a trillion dollars, they’re worth some crazy number.
“I’m approving on behalf of the United States, so they’ll have a partner, the United States, and they’ll have a lot of bidders. The United States will do what we call a joint venture,” he stated.
Temporary service disruption
On Sunday, TikTok blocked access for U.S.-based users for approximately 12 hours. The interruption was linked to a new U.S. law mandating that TikTok either be sold by its Chinese parent company, ByteDance or face a ban in the country.
The service restoration began after Trump assured TikTok’s service providers that they would not face penalties. TikTok confirmed this development in a statement posted on X (formerly Twitter):
“In agreement with our service providers, TikTok is in the process of restoring service,” TikTok said in a post on X.
“We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”
“It’s a strong stand for the First Amendment and against arbitrary censorship. We will work with President Trump on a long-term solution that keeps TikTok in the United States,” the company added.
Trump’s executive order
In a post on Truth Social, Trump announced plans to issue an executive order on Monday, the day of his inauguration, to extend the timeline before the law’s prohibitions take effect.
“I will issue an executive order on Monday to extend the period of time before the law’s prohibitions take effect so that we can make a deal to protect our national security. The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order,” Trump wrote.
He also hinted at his personal interest in keeping TikTok operational, noting its importance for broadcasting his inauguration.
What you should know
- TikTok, owned by Chinese tech giant ByteDance, has been at the center of U.S. national security debates. President Joe Biden signed a bipartisan bill requiring ByteDance, TikTok’s Chinese parent company, to divest its controlling stake in the app within six months or face a ban in the United States.
- The legislation aimed to address national security concerns over TikTok’s data collection practices and its alleged ties to the Chinese government.
- The platform has over 170 million American users and supports more than 7 million small businesses. The app’s service disruption on Sunday highlighted the tension between its Chinese ownership and U.S. regulatory demands.
