TikTok may have dodged a US ban but unresolved questions about its algorithm could remain a source of tension in the broader US-China relationship, according to analysts.
ByteDance, the parent company of the social media site, signed a binding agreement this week to divest its US entity into a joint venture controlled by a consortium of American investors, ending years of legal and political uncertainties.
TikTok CEO Shou Zi Chew said in an internal memo on Thursday that the deal effectively averted a looming nationwide ban and secured the platform’s future for its 170 million American users.
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The new entity, named TikTok USDS Joint Venture LLC, will come into effect on January 22.
“The US joint venture will be responsible for US data protection, algorithm security, content moderation and software assurance,” Chew said.
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“It will also have the exclusive right and authority to provide assurances that content, software and data for American users is secure.”
