WASHINGTON (AP) — The head of a powerful House committee is pressing the White House for answers about the deal to shift TikTok into American ownership
one day after President Donald Trump signed an executive order supporting the plan.
Rep. John Moolenaar, a Michigan Republican who chairs the Select Committee on the Chinese Communist Party, welcomed the proposal as “an important step” toward meeting Congress’s mandate that TikTok be divested from its Chinese parent, ByteDance. But he warned that U.S. law requires far more than a simple ownership change, stressing that there must be no cooperation with ByteDance on TikTok’s algorithm and no ongoing operational ties.
The draft deal would transfer TikTok into a new U.S.-controlled venture backed by American investors, with Oracle overseeing audits of the platform’s recommendation system. ByteDance would retain less than 20% ownership and one seat on the board, though it would be excluded from security-related matters. U.S. partners would hold the controlling stake of roughly 80%.
Critics say this structure may still fall short of the law. Craig Singleton of the Foundation for Defense of Democracies argued that even limited representation gives Beijing influence: “ByteDance on the board means Beijing in the building,” he said. Others note the legislation clearly prohibits any ongoing cooperation on algorithms or data sharing.
Beyond national security concerns, experts point out that TikTok’s algorithm is built for engagement and overuse. “Moving it to the U.S. won’t solve that problem,” said Clemson University computer scientist Bart Knijnenburg, who urged greater transparency in how the feed works.
The proposed U.S. TikTok is expected to carry a $14 billion valuation — a figure Vice President JD Vance called a “good deal” but analysts described as surprisingly low. Some suggested politics or licensing costs may have depressed the price, while noting TikTok’s competitive advantage has faded as creators spread across multiple platforms.
Congress passed legislation last year requiring ByteDance to divest TikTok’s U.S. operations, a law upheld by the Supreme Court in January. Trump, since returning to the White House, has issued executive orders allowing the platform to continue running while negotiations proceed.
China, for its part, repeated its call for fair treatment of its companies. Foreign Ministry spokesperson Guo Jiakun said Beijing supports “sound commercial negotiations” as long as they comply with Chinese law and balance the interests of both sides.