TikTok US Divestiture: Trump to Sign Executive Order Clearing Sale and Extending Ban Pause

President Donald Trump is set to sign an executive order on Thursday to officially clear the sale of TikTok’s US operations to American investors. The move will also extend a pause on the US ban for another 120 days and transfer control of TikTok’s algorithm to Oracle.

A White House official confirmed the decision to CNN, saying it follows months of negotiations between TikTok’s Chinese parent company ByteDance and US regulators. The announcement comes ahead of a planned meeting between Trump and Chinese President Xi Jinping at the upcoming APEC Summit.

Details of the TikTok US Divestiture Deal

Earlier this year, a US law took effect requiring TikTok to divest around 80% of its American business to US-backed investors or face a nationwide ban. Trump’s executive order will recognize the new ownership deal as meeting those legal requirements. It will also extend the current pause on enforcing the ban by 120 days, giving regulators time to finalize paperwork and approvals. Trump previously extended the pause until December 17.

Under the proposed plan, TikTok’s US entity will be restructured as a new joint venture majority owned by American investors and governed by a US-based board. Oracle will take responsibility for overseeing TikTok’s core algorithm, data systems, and privacy compliance. This step aims to address national security concerns that previously fueled calls for banning the app.

The deal is expected to protect access for the app’s roughly 150 million US users while ensuring that sensitive user data stays under American oversight. Officials say the agreement represents a compromise between safeguarding US interests and keeping TikTok operational in its biggest market outside China.

Impact on US-China Relations and Tech Policy

This move comes as Trump seeks to balance national security priorities with diplomatic talks. The timing of the executive order — just weeks before the APEC Summit in South Korea — could set the stage for Trump and Xi’s first in-person meeting since Trump returned to office. Analysts say the TikTok deal could be used as a bargaining chip in broader US-China trade and technology negotiations.

Experts also note that the deal could shape future rules on how foreign-owned tech platforms operate in the US. By handing algorithm control and data oversight to Oracle, the US government may be setting a precedent for how it deals with other apps from countries it views as strategic competitors.

The TikTok US divestiture marks a turning point in one of the most high-profile tech security disputes in recent years. It offers a pathway to keep the popular app in the US while meeting Washington’s data and security requirements.

FYI (keeping you in the loop)-

Q1: What is the TikTok US divestiture?

It is the sale of TikTok’s US business to American investors and the transfer of algorithm oversight to Oracle.

Q2: Why is Donald Trump signing this executive order?

To approve the sale, meet legal security requirements, and extend the pause on the US TikTok ban.

Q3: What role will Oracle play in the new TikTok structure?

Oracle will oversee TikTok’s algorithm, data systems, and privacy standards under US law.

Q4: How long is the TikTok ban delayed?

The pause will be extended by another 120 days to allow regulatory approvals to finish.

Q5: How could this affect US-China relations?

The deal could be part of larger talks between Trump and Xi at the APEC Summit next month.