In a groundbreaking move, US President Donald Trump issued an executive order on Thursday, paving the way for Chinese-owned video-sharing app TikTok to continue its operations in the United States under a new ownership structure. This decision comes as part of a deal with Chinese President Xi Jinping, aimed at addressing national security concerns while preserving the platform's widespread popularity.

According to the order, the new joint venture will see TikTok's parent company, ByteDance Ltd., retaining a minority stake of less than 20 percent. The rest of the ownership will transition to US-based entities, ensuring majority American control. This strategic move is designed to safeguard user data and fortify national security, mitigating the risks previously associated with the Chinese company's control.

The joint venture will also introduce a newly formed board of directors, responsible for overseeing TikTok's operations in compliance with stringent regulations that prioritize the protection of American users' data. Furthermore, content moderation policies, crucial for determining allowable content on the platform, will be regulated under the new structure.

Oracle, a major American technology firm, will play a pivotal role by managing TikTok's algorithms and user data, a key component of the agreement intended to eliminate potential security threats. Additionally, other social media applications under ByteDance, such as Lemon8 and CapCut, will fall under the same joint venture, extending the deal's scope.

The finalized agreement requires further scrutiny and approval by regulatory bodies in both the US and China, as stated in recent news reports. This review will ensure that the operations align fully with both nations' legal and security standards.

In his executive order, President Trump highlighted the cultural and economic significance of TikTok, noting that the platform is not only a source of entertainment but also a vital tool for income and business marketing for approximately 170 million Americans.

The announcement of this deal was first made by Trump on September 16 on Truth Social, following intense negotiations triggered by the Foreign Adversary Controlled Applications Act. This legislation aims to block internet hosting services from foreign-controlled applications that pose national security threats, putting TikTok's operations at risk.

This landmark deal represents a pivotal moment in the ongoing discussions about data privacy, international cooperation, and the role of digital platforms in global commerce and communication. As the regulatory review process unfolds, the world will be watching closely to see how this new model of international cooperation and oversight is implemented in the dynamic landscape of global tech governance.