TikTok Creates New U.S. Company to Meet Security Law and Avoid Ban

截屏2025 12 23 下午3.20.11

TikTok has announced a major change to how it operates in the United States.
CEO Shou Zi Chew told employees that TikTok’s U.S. business will move into a new company called TikTok USDS Joint Venture LLC.

This move allows TikTok to remain available in the U.S. while complying with American national security laws.

Why TikTok Is Creating a New U.S. Company

Under a U.S. national security law upheld by the Supreme Court, TikTok’s parent company ByteDance was required to reduce its control over TikTok’s U.S. operations.

Without these changes, TikTok could have faced an effective ban in the United States.

In September, Donald Trump signed an executive order giving TikTok more time to complete a deal that meets the law’s requirements. The final deadline is January 22–23.

Who Owns TikTok’s New U.S. Joint Venture?

The new TikTok U.S. entity will be majority-owned by American investors and governed by a U.S.-controlled board.

Ownership breakdown:

  • 50% owned by new U.S.-based investors

    • Oracle – 15%

    • Silver Lake – 15%

    • MGX – 15%

  • Just over 30% owned by existing ByteDance investors

  • Less than 20% retained by ByteDance

The company will be overseen by a seven-member board, with most directors being American.

How TikTok Will Protect U.S. User Data

To address security concerns:

  • Oracle will act as TikTok’s trusted security partner

  • All sensitive U.S. user data will be stored in Oracle’s U.S.-based cloud data centers

  • Oracle will audit and verify compliance with U.S. national security rules

Following the announcement, Oracle shares rose 5% in after-hours trading.

TikTok’s Algorithm and Content Control Changes

tiktok

The new TikTok U.S. company will be responsible for:

  • Protecting U.S. user data

  • Ensuring software and system security

  • Managing content moderation

  • Rebuilding TikTok’s recommendation algorithm using only U.S. user data

This step is meant to ensure the content feed is free from outside influence or manipulation.

What TikTok’s Global Teams Will Still Manage

TikTok’s U.S. teams will continue working with global operations on:

  • Advertising

  • E-commerce

  • Marketing

  • Global product compatibility and performance

Political Background Behind the TikTok Deal

  • The original law was signed by Joe Biden

  • Trump’s executive order temporarily blocked enforcement to allow the deal to close

  • Trump said Xi Jinping agreed to proceed with the proposal

  • JD Vance said China showed resistance and valued TikTok’s U.S. business at $14 billion

ByteDance’s Response

ByteDance said it will:

“Work in accordance with applicable laws to ensure TikTok remains available to American users.”

The company also thanked both President Xi Jinping and President Donald Trump for their efforts to keep TikTok operating in the United States.