US President Donald Trump signed an executive order approving a deal to keep TikTok operating in the United States by creating a new $14 billion US-based entity. The move ensures the social media app is majority-owned and controlled by American investors while ByteDance, the Chinese parent company, retains less than 20% ownership.

Trump noted during the signing at the White House that he had a “very good talk with President Xi” and received approval from China for the deal. The executive order stipulates that TikTok US will be run by a newly established joint venture, protecting Americans’ data privacy and removing control from any foreign adversary.

The new entity will be backed by a group of US investors, including Oracle and Silver Lake. Vice President JD Vance emphasized that the deal allows Americans to use TikTok with greater confidence, noting that algorithm control will rest with US investors rather than any foreign government.

“This ensures that decisions are made based on business interests, not as a propaganda tool,” Vance said, highlighting the importance of data security and domestic oversight.

The TikTok deal comes amid heightened US concerns over Chinese technology companies’ access to American user data. By creating a US-controlled entity, the administration aims to balance the app’s popularity with national security and privacy requirements.

Trump’s executive order paves the way for TikTok to continue operating in the US under American management while providing a framework for safeguarding user data, ensuring regulatory compliance, and strengthening investor confidence.