US Lifts TikTok Ban on Government Devices After Ownership Restructuring
AM730 · 2 SOURCESabout 1 hour ago2 MIN
Summary
The Trump administration has lifted the federal prohibition on TikTok for government devices, arguing that the platform no longer poses a national security threat following a major ownership restructuring. The Office of Management and Budget issued a memorandum on September 10 rescinding the 2023 directive that barred federal agencies from using the short-video platform on official devices. This policy reversal coincides with TikTok's January establishment of TikTok US Data Security, a joint venture that transferred operational control to American investors including Oracle and Silver Lake Capital, while ByteDance maintains a minority stake.
Key Points
- The Office of Management and Budget revoked the 2023 federal TikTok prohibition on September 10, with the Justice Department confirming the restructured company no longer qualifies as a "covered application" under 2022 legislation
- TikTok established TikTok US Data Security in January, with Oracle and Silver Lake Capital as investors; ByteDance retains 19.9% as the largest single shareholder
- The new seven-member board is led by CEO Shou Zi Chew, with the majority being American citizens; US user data will be stored on Oracle's domestic servers
- On July 6, Trump publicly criticized Gordon Chang, calling his China coverage "always too negative" and dismissing TikTok security concerns as fearmongering
- Trump claims 16.7 million TikTok followers and declared himself the most-viewed national leader on the platform, with #Trump content exceeding 425 billion views
Why It Matters
This policy reversal marks a significant softening in the US approach to Chinese technology platforms, potentially signaling a recalibration of Washington-Beijing tech relations ahead of the 2026 midterm elections. The decision also raises questions about the consistency of US national security enforcement, given that Congress had previously passed legislation mandating TikTok's divestiture or ban. For global tech companies operating across US-China tensions, the TikTok case establishes a precedent that ownership restructuring can potentially resolve regulatory barriers.
This policy reversal marks a significant softening in the US approach to Chinese technology platforms, potentially signaling a recalibration of Washington-Beijing tech relations ahead of the 2026 midterm elections. The decision also raises questions about the consistency of US national security enforcement, given that Congress had previously passed legislation mandating TikTok's divestiture or ban. For global tech companies operating across US-China tensions, the TikTok case establishes a precedent that ownership restructuring can potentially resolve regulatory barriers.