TikTok Receives 75-Day Reprieve As National Security Review On Ownership Continues

President Donald Trump has signed an executive order on January 20, 2025, granting TikTok a 75-day reprieve. This move temporarily halts the enforcement of a U.S. law that mandates ByteDance, TikTok's parent company, to sell the app to an American firm. The extension allows the U.S. government additional time to evaluate and determine the best approach for addressing national security concerns related to TikTok's ownership.

The Protecting Americans from Foreign Adversary-Controlled Applications Act (Pub. L. 118-50, div. H) restricts activities involving foreign adversary-controlled apps like TikTok. These restrictions apply to ByteDance Ltd. and its subsidiaries, affecting various applications they manage, including TikTok.

National Security Concerns and Ownership

The White House has stressed that TikTok should remain accessible in the US, but under American ownership to mitigate national security risks. President Trump highlighted that a thorough review of sensitive intelligence and mitigation measures taken by TikTok is essential before any final decision is made.

President Joe Biden had previously signed a law in April 2024 requiring ByteDance to divest its majority stake in TikTok for it to continue operating in the United States. This law took effect on January 19, 2025, with services resuming at noon Eastern Time on the same day.

Executive Order Details

The executive order outlines several key points: it does not alter the authority of any executive department or agency and does not create enforceable rights or benefits against the U.S. government or any other entity.

The Attorney General is directed by the executive order to refrain from enforcing the law for the next 75 days. During this period, no penalties will be imposed for noncompliance with the law, including distribution or updating of TikTok.

China's Stance on Ownership Proposal

In response to President Trump's proposal for a 50% U.S. ownership stake in TikTok, China reiterated that acquisitions should be independently decided by companies and comply with respective countries' laws, as reported by South China Morning Post.

Mao Ning from China's foreign ministry emphasized that Chinese companies must adhere to Chinese laws when involved in such transactions. She also noted that TikTok has been successfully operating in the U.S., remaining popular among American users.

Elon Musk's Perspective

Tech billionaire Elon Musk voiced his opposition to banning TikTok due to concerns about freedom of speech. However, he pointed out the imbalance where TikTok operates freely in the U.S., while X (formerly Twitter) is banned in China.

Mao Ning responded to Musk's comments by stating that China manages internet access according to its laws and regulations and welcomes foreign companies as long as they comply with Chinese laws.

Future Prospects for TikTok

President Trump proposed establishing a joint venture where the U.S. would hold a 50% stake in TikTok to ensure its continued operation while addressing security concerns. However, ByteDance has resisted selling TikTok, and no buyers have been identified yet.

Trump asserted that without American approval, TikTok could not operate in the U.S., adding that its value could be "hundreds of billions of dollars — possibly trillions."