President Donald Trump signed an executive order on 20th January 2025, granting TikTok a 75-day extension to delay enforcement of the US law mandating ByteDance, TikTok’s Chinese parent company, to divest its stake in the app. This extension provides time for a comprehensive review of TikTok’s operations and the associated national security concerns.
The law, signed by President Joe Biden in April 2024, requires foreign adversary-controlled applications, such as TikTok, to be sold to American entities for continued US operations. It officially took effect on 19th January 2025. Its primary goal is to address data security risks tied to ByteDance’s Chinese ownership. The legislation prohibits the distribution, maintenance, or updates of apps under foreign adversary control, targeting entities like ByteDance Ltd. and its subsidiaries.
The White House emphasized the need for TikTok’s continued US operations under American ownership to mitigate security risks. The executive order halts enforcement for 75 days, ensuring no penalties for noncompliance during this time. The Attorney General has been instructed to withhold enforcement actions and issue written guidance affirming non-liability for activities during the extension period.
The Chinese government stated that decisions about acquisitions must comply with respective national laws. Mao Ning, China’s foreign ministry spokeswoman, urged the US to foster a fair and open business environment for foreign companies.
President Trump proposed a 50% ownership stake in TikTok for the US to address national security concerns while allowing TikTok to operate in the country. ByteDance has resisted previous proposals for selling TikTok, and no potential buyers have been identified. Trump emphasized that TikTok’s operations in the US require American approval and highlighted the platform’s potential valuation, which he suggested could range from hundreds of billions to trillions of dollars.
Elon Musk expressed opposition to banning TikTok, citing concerns over freedom of speech. He highlighted global disparities in tech regulations, noting that while TikTok operates freely in the US, X (formerly Twitter) remains banned in China. In response, Mao Ning defended China’s internet regulations, stating that foreign companies are welcome to operate within the country if they comply with Chinese laws.
The US government will utilize the 75-day extension to explore measures that balance national security interests with TikTok’s operational continuity. Ongoing discussions will likely involve negotiations between the US government, ByteDance, and potential stakeholders.
