President Donald Trump signed an executive order on January 20, 2025, granting TikTok a 75-day extension. This temporary measure halts the enforcement of a U.S. law that requires TikTok’s parent company, ByteDance, to sell the app to an American entity.
The extension provides the U.S. government with more time to review and determine the best course of action for addressing national security concerns linked to the app’s ownership.
Background on the Law
The law, signed by President Joe Biden in April 2024, mandates that ByteDance divest a majority of its stake in TikTok to allow the app to continue operating in the United States.
This law took effect on January 19, 2025, with services being restored from 12 PM ET on the same day. The primary goal of the law is to address national security risks associated with TikTok’s Chinese ownership.
Key Provisions of the Law
- Prohibited Activities: The Protecting Americans from Foreign Adversary-Controlled Applications Act (Pub. L. 118-50, div. H) restricts the distribution, maintenance, or updating of foreign adversary-controlled applications, including TikTok.
- Entities Affected: These restrictions apply to ByteDance Ltd. and its subsidiaries, encompassing various applications they operate, including TikTok.
National Security Concerns
The White House has emphasized that TikTok should remain available in the U.S., but under American ownership, to mitigate national security risks. President Trump noted that a comprehensive review of sensitive intelligence and the mitigation measures taken by TikTok would be necessary before deciding on any final action.
Actions Taken by the U.S. Government
- Attorney General’s Role: The executive order directs the Attorney General to refrain from enforcing the law for the next 75 days. During this period, no penalties will be imposed for noncompliance with the law, including the distribution, maintenance, or updating of TikTok.
- Guidance for Compliance: The Attorney General is instructed to issue written guidance clarifying that no liability will arise for actions taken during this 75-day period.
General Provisions of the Executive Order
The executive order clarifies several important points:
- It does not affect the authority of any executive department or agency.
- It does not create enforceable rights or benefits against the U.S. government, its officers, or any other entity.
China’s Response to TikTok Ownership Proposal
In response to President Trump’s proposal of giving the U.S. a 50% ownership stake in TikTok, the Chinese government reiterated that acquisitions should be ‘decided independently by companies’ and should comply with the laws of the respective countries, according to a report by the South China Morning Post.
This comment followed the implementation of the law that mandates ByteDance sever its ties with TikTok, leading to the app’s temporary unavailability in the U.S. this past Sunday.
Chinese foreign ministry spokeswoman Mao Ning emphasized that Chinese companies must adhere to Chinese laws when involved in such transactions. She also highlighted that TikTok has been successfully operating in the U.S. for years and remains highly popular among American users. Mao further urged the U.S. to provide a fair, open, and non-discriminatory business environment for foreign companies, including TikTok.
President Trump’s Position on TikTok’s Ownership
President Trump has proposed that a joint venture be established, in which the U.S. would hold a 50% stake in TikTok. This move aims to ensure TikTok continues operating in the U.S. while addressing national security concerns. However, ByteDance has previously resisted selling TikTok, and no potential buyers have been identified at this time.
Trump has strongly asserted that TikTok could not operate in the U.S. without American approval, adding that the platform’s value could be “hundreds of billions of dollars — possibly trillions.”
Elon Musk’s View on TikTok Ban
Tech billionaire Elon Musk expressed his opposition to banning TikTok, citing concerns about freedom of speech. However, he also noted the imbalance in the global tech landscape, where TikTok operates freely in the U.S., but X (formerly Twitter) is banned in China. Musk argued that a resolution is necessary to address this disparity.
China’s Response to Musk’s Comments
In reaction to Musk’s remarks, Mao Ning responded that China manages internet access in line with its laws and regulations. She stated that foreign companies are welcome to operate in China as long as they comply with Chinese laws.
