TikTok Photo:VCG

Social media platform TikTok announced on Friday that the new TikTok US Data Security (USDS) Joint Venture LLC has been established in compliance with the Executive Order signed by the US president on September 25, 2025, and it is now enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok's vibrant global community and experience, according to the statement published on the official website of the social media company.

TikTok USDS Joint Venture has three managing investors, Silver Lake, Oracle and MGX, each holding 15 percent. Notably, ByteDance, TikTok's parent company, retains 19.9 percent of the joint venture, remaining as the largest single shareholder in the new US data security joint venture.

The joint venture, built on the foundation of the TikTok USDS organization, will operate as an independent entity governed by seven-member, majority-American board of directors, including Shou Chew, the Chief Executive Officer of TikTok, where he leads the company's global businesses and strategy. The joint venture will be led by Adam Presser, who was appointed on Friday as CEO of the joint venture by the Board as one of its first actions, according to the company.

Completing the full consortium of investors include Dell Family Office, the investment firm of Michael Dell, Founder, Chairman and CEO of Dell Technologies and Vastmere Strategic Investments, LLC, an affiliate of Susquehanna International Group, LLP among others.

The company said TikTok USDS Joint Venture's mandate is to secure US user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures. It will safeguard the US content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications, said the statement.

The company said that the US user data will be protected by USDS Joint Venture in Oracle's secure US cloud environment. The joint venture will operate a comprehensive data privacy and cybersecurity program that is audited and certified by third party cybersecurity experts. 

Regarding the algorithm security, the company said that the new joint venture will retrain, test, and update the content recommendation algorithm on US user data, and the content recommendation algorithm will be secured in Oracle's US cloud environment.

The joint venture will secure US apps through software assurance protocols, and review and validate source code on an ongoing basis, assisted by its Trusted Security Partner, Oracle.

The company said that TikTok global's US entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing.

The latest outcome represents one of the concrete steps taken to implement the relevant consensus previously reached between China and the US, Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday, noting that during earlier consultations, the two sides formed a basic framework for a compliance and regulatory solution concerning TikTok and the company is now advancing these arrangements at the operational level, reflecting a pragmatic and tangible approach.

This progress also demonstrates that, on the basis of mutual respect and equal consultation, it is feasible to resolve economic, trade, and corporate operational issues through cooperation, said Zhou. While responding to US concerns over data security and related matters, the arrangement also provides a realistic pathway for Chinese companies to maintain compliant operations in the US market, helping to stabilize market expectations, said the expert. 

Above all else, this benefits the vast American users, ensuring that the popular social media platform can continue to meet the growing demand of TikTok's large user base, the expert said.

Previously, in response to reports that TikTok has signed a deal with three investors and plans to establish a joint venture in the US to ensure its continued operations there, He Yongqian, a spokesperson of China's Ministry of Commerce (MOFCOM), said at a regular press conference on December 25 that China hopes that relevant companies can reach solutions on the TikTok issue that comply with Chinese laws and regulations and reflect a balanced consideration of interests. He urged the US to provide a fair, open, transparent and non-discriminatory business environment for Chinese companies.

Regarding the TikTok issue, China has always opposed politicization, instrumentalization and weaponization of technology as well as economic and trade matters and will never seek to reach any agreement at the expense of principles, interests of companies, or international fairness and justice, according to MOFCOM previously.

Also, a spokesperson of the Chinese Ministry of Foreign Affairs reiterated at a regular press conference on December 19 that China's position on the TikTok issue remains clear and consistent when asked whether China has approved a joint venture agreement regarding TikTok and about an internal letter by TikTok CEO updating the progress of TikTok's US operations.

In an earlier press conference in September, Guo Jiakun, a spokesperson of the Chinese Ministry of Foreign Affairs, said that the Chinese government respects the wishes of the company, and would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China's laws and regulations and takes into account the interests of both sides. The US side needs to provide an open, fair and non-discriminatory environment for Chinese investors, said the spokesperson.

Global Times