As TikTok faces shutdown in the U.S., President-elect Donald Trump suggests a bold plan to save the app by acquiring half of its operations.
Key Points at a Glance
- TikTok’s services began degrading over the weekend as a federal ban loomed due to national security concerns.
- Donald Trump proposes a joint venture granting 50% ownership of TikTok’s U.S. operations to the federal government.
- TikTok responds by restoring services and pledging cooperation with the incoming administration.
- The proposal raises questions about funding, governance, and long-term implications for U.S.-China tech relations.
The popular video-sharing app TikTok was set to go dark in the United States following the implementation of the Protecting Americans from Foreign Adversary Controlled Applications Act. The legislation, passed with bipartisan support, required TikTok’s Chinese owner ByteDance to sell the app’s U.S. operations or face a ban. The law’s premise is rooted in concerns over national security, specifically fears of data collection and potential manipulation by the Chinese government.
With no buyer secured and the Supreme Court dismissing TikTok’s appeal, service disruptions began over the weekend. Apple removed ByteDance’s apps from its App Store, and users experienced degraded performance as service providers started withdrawing support ahead of the midnight deadline.
Amid this uncertainty, President-elect Donald Trump announced plans to issue an executive order upon taking office, extending TikTok’s operations for 90 days. His proposal included the formation of a joint venture where the U.S. government would acquire a 50% stake in TikTok’s U.S. division.
“By doing this, we save TikTok, keep it in good hands, and allow it to stay up,” Trump stated. He emphasized the app’s value, suggesting it could be worth “hundreds of billions, maybe trillions” of dollars under U.S. stewardship.
Trump’s proposal also tied TikTok’s survival to the upcoming inauguration. “Americans deserve to see our exciting Inauguration on Monday, as well as other events and conversations,” he added.
TikTok quickly responded, thanking Trump for his intervention and restoring services for its 170 million U.S. users.
“We appreciate the clarity and assurance provided to our service providers,” the company stated. ByteDance also expressed willingness to work with the incoming administration to find a long-term solution that ensures the app’s continued operation in the U.S.
While Trump’s proposal temporarily alleviates concerns over TikTok’s shutdown, it raises significant questions:
- Funding and Governance: Trump’s plan does not detail how the U.S. government would fund its acquisition or manage its stake in TikTok.
- Consistency with Republican Principles: Critics point out that federal ownership of a private enterprise contrasts sharply with the Republican Party’s stance on small government and reduced spending.
- U.S.-China Relations: ByteDance’s willingness to divest remains unclear, as does the Chinese government’s approval. Elon Musk, co-leader of the incoming administration’s Department of Government Efficiency and owner of X, has highlighted the imbalance in U.S.-China tech access, advocating for a reciprocal approach.
Trump’s suggestion of partial government ownership of TikTok marks an unprecedented move in U.S. tech policy. While aimed at addressing national security concerns, it sets a complex precedent for how foreign-owned apps are managed.
The long-term impact on U.S.-China relations, tech regulation, and consumer privacy remains uncertain. However, with TikTok’s immediate future secured, the focus now shifts to negotiations that could redefine the app’s role in America’s digital landscape.
