President Donald Trump signed an executive order on Thursday that facilitates the transfer of TikTok's U.S. operations from its Chinese parent company, ByteDance, to a consortium of American investors. This move aims to address national security concerns and comply with U.S. laws that restrict foreign control over social media platforms.

The agreement, valued at approximately $14 billion, will create a new joint venture with majority American ownership. Trump stated that the deal is a significant step for data security and will ensure that TikTok remains accessible to its millions of U.S. users. He expressed gratitude for the support from Chinese President Xi Jinping, who he said approved the deal.

"I spoke with President Xi. We had a good talk, I told him what we were doing, and he said go ahead with it," Trump said during the signing ceremony. The president emphasized that the new ownership structure would be entirely American-operated, with key investors including Larry Ellison of Oracle, media mogul Rupert Murdoch, and Michael Dell of Dell Technologies.

Vice President J.D. Vance highlighted that the deal ensures American investors will control TikTok's algorithm, which is crucial for protecting user data and preventing foreign influence. "We don't want this used as a propaganda tool by any foreign government," Vance said. He added that the administration would provide more details about the investors involved in the transaction soon.

The new ownership structure is a response to legislation signed by President Joe Biden last year, which mandated that TikTok must divest from its Chinese ownership or face a ban in the U.S. The Protecting Americans from Foreign Adversary Controlled Applications Act requires that apps like TikTok be restricted unless they are no longer under the control of foreign adversaries.

The deal comes after months of negotiations and delays in enforcement of the law. Trump had previously issued executive orders to prevent TikTok from being banned while seeking a resolution. The new venture will reportedly have about 80% ownership by American investors, with ByteDance retaining a minority stake of 20% or less.

Concerns remain about how the new ownership will influence TikTok's content and policies. Critics have pointed out that the involvement of investors with ties to Trump could lead to political influence over the platform. David Greene, civil liberties director of the Electronic Frontier Foundation, noted that users might experience changes in editorial policies under the new ownership.

The Chinese government had previously opposed the forced divestment of TikTok, labeling it an act of "robbery." However, as U.S.-China trade relations evolved, Chinese officials appeared more amenable to the deal. Experts suggest that TikTok's significance has diminished in the broader context of U.S.-China relations, with Beijing more focused on retaining access to U.S. technology and services.

As the transition unfolds, it remains to be seen how the changes will affect TikTok's user experience and whether the platform will maintain its popularity among American users, particularly younger demographics who rely on it for news and entertainment.