US Plans Homegrown TikTok Model To Keep Chinese App in Market

The White House announced on Monday that a US version of TikTok will use a homegrown version of the app’s algorithm. This proposal is seen as a major step toward keeping the Chinese-owned video-sharing app available in the United States. The idea is to create a version that is fully operated under US rules and ownership while still providing the popular app’s experience to American users.

Why the Algorithm Matters

TikTok’s algorithm, often called the app’s “secret sauce,” decides which videos appear on users’ feeds. This algorithm is key to the app’s popularity and engagement. US officials have raised concerns that, under ByteDance’s control, the algorithm could be used to collect data on Americans or influence public opinion. Therefore, creating a US-based version with a locally controlled algorithm is central to ensuring national security and user privacy.

Law Requires Sale or Ban

A law introduced under President Joe Biden requires ByteDance, TikTok’s current Chinese owner, to either sell its US operations or face a ban. This law is part of broader US efforts to protect data security and prevent foreign influence on technology platforms. The law applies because TikTok holds a huge amount of personal data from American users, and policymakers have repeatedly expressed concerns about potential misuse.

Delays and Negotiations

Former President Donald Trump had also raised concerns about TikTok and threatened a ban. However, he repeatedly delayed enforcement while the White House explored ways to allow a US takeover. Officials have engaged in talks with China to permit ByteDance to transfer control of its US operations, including the algorithm, to an American-owned company. These negotiations are delicate because the algorithm is the most sensitive and valuable part of TikTok’s operations.

New US-Based TikTok Company

Under the current proposal, TikTok’s US operations would move into a newly formed US-based company. The new company would have a majority-American board of directors to ensure decision-making remains in American hands. Oracle, a leading US cloud technology company that already works with TikTok, would act as a security guarantor. This means Oracle would ensure the algorithm is fully protected from any Chinese access or influence.

Full Algorithm Inspection

A US official said the TikTok recommendation algorithm would be “fully inspected and retrained” using US user data. Once retrained, it would be operated entirely by the new US company. The official added that the algorithm would be continuously monitored to prevent any outside interference, ensuring compliance with US national security standards.

Progress With China

The announcement came after President Trump spoke with Chinese President Xi Jinping about TikTok. These discussions are part of ongoing US-China trade and technology negotiations. Trump is expected to sign an executive order soon, confirming that the proposed deal meets US national security requirements. The executive order would provide official backing for the arrangement and reassure regulators and the public about the safety of the US-based TikTok operations.

Board Composition and Investors

According to White House Press Secretary Karoline Leavitt, the new US board controlling TikTok will have seven members, six of whom will be Americans. Reports suggest that prominent investors like media tycoon Rupert Murdoch, his son Lachlan Murdoch, and venture capital firms such as Andreessen Horowitz and Silver Lake may be involved. Their participation would ensure that the US company has strong financial backing and governance.

China’s Response

China has made only limited comments about the ongoing discussions. State media noted that Beijing respects the decisions of companies and encourages negotiations based on market rules. China emphasized that any solution should balance the interests of enterprises while complying with Chinese laws. This careful response suggests that China is watching the process closely but is willing to allow commercial negotiations to continue.

If successful, the US-based TikTok model could serve as a template for handling other foreign-owned apps in the country. It would provide a solution that balances national security with consumer access to popular digital platforms. Users in the US would continue enjoying TikTok’s features, while regulators would have confidence that sensitive data and the algorithm remain under American control. This move also demonstrates a growing trend of creating localized versions of global technology platforms to meet legal and security requirements in different countries.