President Donald Trump has unveiled a plan to prevent TikTok’s shutdown in the United States. The proposal involves issuing an executive order to establish a joint venture granting the U.S. government 50% ownership of the platform.

“I will issue an executive order on Monday to extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security,” Trump wrote on Truth Social. “I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to say up.”

The plan emerged after TikTok suspended its U.S. operations and major tech companies, including Apple and Google, removed the app from their stores following a federal ban.

Potential Buyers and International Negotiations 

As POLITICO reports, Trump’s incoming national security advisor, Rep. Mike Waltz, said discussions with Chinese President Xi Jinping were ongoing, highlighting China’s role in the potential deal. 

Chinese officials reportedly discussed selling TikTok to Elon Musk, who stated on X that while he opposes banning TikTok, the current situation where “TikTok is allowed to operate in America, but X is not allowed to operate in China is unbalanced.”

Other potential buyers include billionaire Frank McCourt and “Shark Tank” star Kevin O’Leary, who has met with Trump at Mar-a-Lago to discuss his bid. Trump’s team explores two main options: a 90-day reprieve from certain legal provisions and directing the attorney general not to enforce fines against companies violating the ban.

Legal Challenges and Enforcement Questions 

The legal basis for Trump’s proposed extension faces scrutiny. The law requires certification to Congress of a divestiture path, “significant progress,” and “relevant binding legal agreements” – conditions that appear unmet as ByteDance resists a sale. Companies face daily fines of $5,000 per user for maintaining TikTok access, potentially amounting to billions of dollars.

House Speaker Mike Johnson emphasized the law’s precise requirements, stating on NBC that an extension requires “an actual deal in the works.” However, he acknowledged Trump’s deal-making interests and mentioned Musk and O’Leary as potential owners.

Senate Intelligence Committee Chair Tom Cotton and Sen. Pete Ricketts asserted that ByteDance must agree to a sale for TikTok to resume U.S. operations, as the law has taken effect with “no legal basis for any kind of ‘extension.'”

Political and User Impact 

TikTok’s temporary shutdown affected 170 million U.S. users. Alan Rozenshtein, a former Justice Department official, suggested that TikTok could bypass the ban by operating through overseas servers for existing users. He views the shutdown as a strategic move to pressure Congress and the incoming administration.

Trump’s pick for attorney general, Pam Bondi, declined to commit to enforcing the TikTok ban during her confirmation hearing, drawing criticism from Senator Richard Blumenthal.

POLITICO noted that the situation created divisions among Democrats, with Sen. Ed Markey expressing disappointment over TikTok’s shutdown and pledging to “fix this mistake,” while former White House chief of staff Rahm Emanuel criticized those showing flexibility in their positions on the platform’s fate.