TikTok has formally secured its future in the United States.
Just ahead of the statutory deadline, a new U.S. joint-venture structure was established, enabling the app to continue operating for more than 200 million American users.
The Details
For the first time, TikTok’s U.S. future rests on a legally binding structure with clearly defined ownership, data, and governance arrangements.
New structure: TikTok U.S. Data Security Joint Venture (USDS) is majority U.S.-owned.
Ownership: ByteDance retains a 19.9% stake, while Oracle, Silver Lake, and MGX act as managing investors with roughly 15% each.
Operations: U.S. user data will be stored domestically at Oracle. Content moderation and trust & safety responsibilities sit with the U.S. entity. The TikTok algorithm remains licensed from ByteDance but will be retrained on U.S. user data.
Background: Why the deal was necessary
A 2024 U.S. law would have banned TikTok without a change in ownership. After years of legal disputes and repeated deadline extensions, this arrangement represents the politically viable middle ground.
Donald Trump described the agreement as a “rescue of TikTok” and publicly thanked Xi Jinping for approving the deal.
Bottom line: TikTok remains active in the U.S. without a full separation from ByteDance. The U.S. gains control over data, moderation, and governance, while China retains economic exposure.
👉 Full story: CNN, Caixin Global, Aljazeera, StraitsTimes
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
