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Trump Proposes Joint Venture to Keep TikTok in the U.S.

Monday, January 20, 2025 by Emily Vargas

Trump Proposes Joint Venture to Keep TikTok in the U.S.
Smartphone with TikTok and Donald Trump - Image by © CiberCuba / Grok

TikTok is facing a renewed threat in the United States following the Supreme Court's decision to uphold a law that could potentially force the platform to discontinue its operations within the country. This legislation mandates that ByteDance, TikTok's parent company, must sell its stake to an entity not considered a U.S. adversary to avoid a ban.

The ruling, which enjoys congressional support, underscores growing concerns about national security and the potential influence of the Chinese government through data collection on American citizens.

In reaction to the looming prohibition, Donald Trump, who is set to take office, has shifted his stance on the widely-used app. During his previous tenure, Trump aimed to ban TikTok citing national security threats, but now he seems more open to finding a solution that ensures the platform's continued presence in the United States.

Recently, on his social platform Truth Social, Trump revealed his plan to issue an executive order that would delay the implementation of the law, thereby providing more time to negotiate either a sale or a secure operational agreement.

A New Strategy for TikTok's Survival

In his post, Trump suggested that he would like the U.S. to hold 50% ownership in a joint venture to keep TikTok operational. This approach could be more appealing for ByteDance, which has been hesitant to sell up until now.

Outgoing President Joe Biden has indicated that enforcing the law will be left to the incoming administration, hinting that any immediate actions might serve more as publicity stunts than effective legal compliance measures.

The court's decision has also raised logistical concerns. TikTok has started disappearing from the Apple App Store in the U.S., restricting users' ability to download updates.

Impact on U.S. Companies and Users

American companies providing services to TikTok, such as Oracle and Amazon Web Services, would need to cut ties with the platform if ByteDance fails to complete the sale before the deadline, granting a temporary reprieve.

The Supreme Court's unanimous decision supports bipartisan concerns that TikTok under Chinese control might pose significant national security risks. This has not gone unnoticed by millions of American users, including content creators and small businesses that rely on TikTok to reach their audience. If ByteDance doesn't secure a compliant buyer, TikTok could face a permanent shutdown by January 19.

The congressional stance, reflected in the law, aims to safeguard the security of sensitive data and prevent possible manipulation by foreign actors. This measure arises amid a tense geopolitical climate where data privacy and technological sovereignty have become top priorities.

Trump has asserted that he will work towards an agreement that allows TikTok to continue operating safely in the U.S. This includes exploring a possible extension of the deadline to find a definitive solution. The outcome of TikTok's future in the United States will largely depend on the negotiations in the coming days and ByteDance's willingness to accept a new partner in its American operations.

TikTok's Legal and Operational Challenges in the U.S.

What is the new law concerning TikTok in the United States?

The new law requires ByteDance, TikTok's parent company, to sell its stake to a non-adversarial entity to avoid being banned in the United States.

How has Donald Trump's approach to TikTok changed?

Donald Trump, once seeking to ban TikTok for national security reasons, now proposes a joint venture where the U.S. holds 50% ownership to keep the app operational.

What could happen if ByteDance doesn't comply with the U.S. law?

If ByteDance fails to find a compliant buyer, TikTok could face a permanent shutdown in the U.S. by January 19.

What impact does the Supreme Court decision have on TikTok users?

The decision has led to TikTok's removal from the Apple App Store in the U.S., affecting users' ability to download updates.

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