The chair of the House Select Committee on China, Representative John Moolenaar, expressed significant concerns regarding a potential licensing agreement for TikTok’s algorithm amid ByteDance’s plans to divest its U.S. operations. Speaking at a forum, Moolenaar highlighted the risks associated with Chinese influence over the algorithm, stating, “I think anytime you have (China) with leverage over the algorithm, I think that’s a problem.” He is currently awaiting further details on a deal discussed by White House officials, which insists that any new owners of TikTok’s U.S. assets must license the algorithm.
President Donald Trump recently signed an executive order that permits the selling of TikTok’s U.S. operations to a consortium of American and global investors, citing national security requirements outlined in a law from 2024 and providing a 120-day timeline to finalize the deal. Notably, the plan includes provisions for the algorithm to be retrained under the oversight of U.S. security partners, which should allow the operation of the algorithm to remain under the control of a new joint venture.
Under the agreement framework, ByteDance would appoint one member from its ranks to the board of the new entity, with Americans filling the remaining six seats. Furthermore, to comply with the 2024 law’s stipulations, ByteDance would maintain less than a 20% ownership stake in TikTok’s U.S. operations. This requirement aims to address worries that the app could be used for surveillance or censorship and aligns with the growing bipartisan consensus in Congress that prioritizes national security.
Previous discussions have shown how sensitive and complex these negotiations are, especially with the necessity for Beijing’s approval over the transfer of TikTok’s algorithm to U.S. firms. Slowed negotiations have reflected broader tensions in U.S.-China trade relations, especially as Washington moves to tighten regulations around data privacy.
While uncertainty looms, these developments present a pathway that underscores potential cooperation and understanding between two significant global powers. If navigated successfully, the resolution to TikTok’s future could not only secure access to the app for its 170 million American users but also establish a precedent for managing international tech companies under similar geopolitical pressures. This hopeful outlook indicates that ongoing diplomatic efforts could pave the way for stronger economic ties and more robust frameworks for tech regulations.
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