TikTok's new U.S. entity would lease its algorithm from Chinese owner ByteDance under the terms of a proposed deal between the U.S. and China, a senior White House official tells Axios.

Why it matters: There had been some talk that ByteDance would be required to sell the algorithm in order to satisfy a 2024 law that demands TikTok be controlled by Americans or face a ban.

A pure sale, however, wouldn't allow ByteDance to continue operating TikTok in countries outside the U.S., which it plans to do. • President Trump is expected to sign an executive order later this week to approve the proposed deal.

Zoom in: The current plan would be for ByteDance to create a duplicate copy of the TikTok algorithm, which then would be leased to a new joint venture controlled by a U.S. investor group l

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