TikTok, the short-video platform owned under Chinese company ByteDance, has finalized an agreement to form a new United States-based entity, even as a federal law that effectively bans the app remains in place and unenforced.
The move follows passage of legislation last year aimed at restricting TikTok’s U.S. operations if it remained under Chinese ownership. President Donald Trump’s administration has not enforced the statute, allowing the app to continue operating nationwide.
U.S. officials have raised national security concerns, arguing TikTok could expose American user data to access from the Chinese government. TikTok has denied those claims, stating that U.S. user data is stored outside China and protected from foreign government access.
The new U.S. entity is designed to separate American operations from ByteDance. It will oversee U.S. user data and certain technical functions and operate under governance structures that include U.S.-based board members. The arrangement includes data-handling rules, oversight provisions, and potential audits intended to satisfy federal regulators.
ByteDance will keep a financial stake, while its operational influence is expected to remain limited.
