TikTok’s new US joint venture is aimed at resolving long-standing security concerns over Chinese ownership.
TikTok has signed a joint venture deal with US-based investors that will allow the video-sharing app to continue operating in the United States, easing concerns over its Chinese ownership.
The move follows years of political pressure and legal threats that could have forced the social media out of its biggest market, where it has more than 170 million users.
TikTok chief executive Shou Chew said the new US entity will oversee data security, content moderation, and algorithm protection for American users.
Under the deal, new US investors will own half of the venture, while ByteDance’s stake will be reduced to just under 20 per cent, the maximum allowed under US law.
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The agreement responds to a law passed in 2024 requiring ByteDance to sell TikTok’s US operations or face a nationwide ban over national security concerns.
China’s foreign ministry said its position on TikTok remains unchanged, while analysts say the deal helps ByteDance keep access to a vital market but does not end regulatory pressure.
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