TikTok: A Power, Profit, and Security Gamble

What is happening?

The bipartisan “Protecting Americans from Foreign Adversary Controlled Applications Act”—commonly called the “TikTok ban”—was initially approved with unprecedented support from Republicans and Democrats. The law, which requires TikTok to divest from its China-based owner, ByteDance, was then upheld by the Supreme Court. However, on his first day in office, President Donald Trump issued an executive order delaying the law’s enforcement by 75 days, signaling his intent to explore a negotiated solution with Beijing.

 

What is the broader picture?

During his first term, Trump championed the TikTok ban, citing national security concerns and data collection risks. Since then, his stance has shifted dramatically. While campaigning for re-election, Trump announced plans to “save TikTok” and used the platform extensively in his presidential campaign.

When the law took effect on January 19, TikTok went dark—but only for a few hours. In the meantime, millions of U.S.-based TikTok users—“TikTok refugees”— who wanted to express their dissatisfaction with the ban migrated to alternative platforms. Among them, RedNote (小红书; Xiaohongshu), a Chinese social media platform focused on fashion and lifestyle, emerged as a popular alternative choice. The app became a space for vibrant exchanges between U.S. and Chinese users but also quickly exposed some American users to the realities of Chinese-style censorship.

But then, less than 24 hours after going black, TikTok was back. TikTok CEO Shou Zi Chew (周受资), who attended Trump’s inauguration, appeared in a video on the platform, thanking President Trump “for his commitment to work with us to find a solution that keeps TikTok available in the United States.” Chew went on to praise Trump for his fundamental understanding of TikTok.

The question of TikTok’s future in the US remains open. Potential buyers include Elon Musk, Canadian businessman Kevin O’Leary (known as “Mr. Wonderful”), billionaire Frank McCourt’s Project Liberty, Oracle Chairman Larry Ellison, Youtuber Jimmy Donaldson (known as MrBeast), and other oligarchs. Musk, who has ties to the Trump administration and Chinese leaders, is considered a leading contender, fueling speculation about an ideological pivot in Trump’s approach to China. This development has left some conservative members of the Senate—who were tenaciously in favor of banning TikTok—feeling sidelined. They are now calling on Trump to clarify his goals for the ongoing negotiations.

 

Why does it matter?

The uncertainty surrounding Trump’s TikTok strategy has raised broader questions about his second-term agenda. Many wonder whether “Trump 2.0” will adopt a softer stance on China. During his inauguration speech, Trump mentioned China only once, announced a reduction in proposed tariffs on Chinese goods, and unveiled a $500 billion AI infrastructure initiative.

TikTok’s future in the U.S. remains complex, and more shifts and turns can be expected. Multiple stakeholders are interested, including the U.S. administration, the Chinese government, ByteDance, Elon Musk, and others, who often have divergent and unpredictable goals.

While the rest of the democratic world closely monitors U.S. developments, it should also independently assess its TikTok-related challenges. Whether the primary concerns are data security, election interference, discourse manipulation, or the platform’s detrimental effects on cognitive health, each country must evaluate the risks and develop tailored responses.