The chairman of the House Select Committee on the Chinese Communist Party, Rep. John Moolenaar, has requested an urgent briefing from the White House following President Donald Trump’s executive order supporting a proposed deal to transfer TikTok’s U.S. operations to American ownership.
Moolenaar described the proposed agreement as “an important step” but stressed that divestment alone does not meet all legal requirements. “The law also set firm guardrails that prohibit cooperation between ByteDance and any prospective TikTok successor on the all-important recommendation algorithm, as well as preclude operational ties between the new entity and ByteDance,” he said.
This request marks Congress’s first oversight action into ongoing negotiations about TikTok, which have followed recent meetings between U.S. and Chinese officials in Spain regarding a possible framework for divestment. President Trump signed an executive order Thursday supporting the deal, stating that Chinese President Xi Jinping agreed to proceed with negotiations. The White House did not respond to requests for comment about Moolenaar’s briefing request.
Under the proposed arrangement, a U.S.-based consortium led by Oracle would own TikTok and audit its algorithm for security purposes. The plan includes licensing ByteDance’s algorithm but aims to prevent operational links with ByteDance, in line with legislative requirements.
Vice President JD Vance stated Thursday that the agreement would keep TikTok available in the U.S. while protecting Americans’ data privacy as mandated by law. Moolenaar indicated he wants further details about these protections.
Experts have raised concerns about both technical and business aspects of the deal. Bart Knijnenburg, a computer scientist at Clemson University who studies recommendation systems, noted that algorithms inherently contain biases and suggested more transparency around how TikTok’s algorithm influences user feeds. He added that shifting ownership will not necessarily address issues related to addictive engagement patterns fostered by such algorithms.
Craig Singleton of the Foundation for Defense of Democracies questioned whether current terms comply with legal standards: “The law is clear: divestiture means severance, not supervision,” Singleton said. “A board seat for ByteDance or any continued role in maintaining the algorithm would flout Congress’s mandate.” He also argued that ByteDance retaining even one board seat could allow ongoing Chinese influence over TikTok operations: “ByteDance’s reported role as the largest single shareholder in a restructured TikTok U.S. venture, combined with a board seat, ensures continuing Chinese influence over the app,” Singleton said. “Plainly put, ByteDance on the board means Beijing in the building.”
Zack Cooper of the American Enterprise Institute echoed concerns about compliance with legal restrictions on cooperation over algorithms and data access.
According to reports, U.S. investors would control roughly 80% of the new venture while ByteDance would hold less than 20%, limited to foreign investor stakes; however, ByteDance would still be represented by one board member excluded from security matters.
Valuation questions have also arisen around this deal. Vice President Vance estimated TikTok’s value at $14 billion under this arrangement and called it a favorable outcome for investors deciding what value they assign to their investment options. Daniel Keum from Columbia Business School described this figure as “surprisingly low” and speculated political factors or undisclosed licensing terms may have influenced it.
Keum noted that while TikTok initially attracted younger users through its video-sharing format, competition has increased as creators now post content across multiple platforms.
U.S lawmakers’ scrutiny intensified after concerns emerged about potential Chinese government influence via TikTok amid growing popularity among young Americans and geopolitical tensions between Washington and Beijing.
“ByteDance has shown time and again that it is a bad actor, and the Chinese Communist Party’s ultimate goal is to see America divided and weakened,” Moolenaar said in his statement. “That is why, on an overwhelming bipartisan basis, Congress required ByteDance to divest control of TikTok.”
Legislation passed last year required ByteDance to sell its U.S assets or face a ban; this law was upheld unanimously by the Supreme Court in January 2025.
President Trump has issued several orders allowing TikTok operations during ongoing sale negotiations since returning to office.
China’s Foreign Ministry reiterated its stance Friday without offering new information: “The Chinese government respects the will of enterprises and welcomes them to conduct sound commercial negotiations based on market rules, reaching solutions that comply with Chinese laws and regulations and achieve a balanced outcome of interests,” spokesperson Guo Jiakun said. “We hope the U.S. will provide an open, fair, and non-discriminatory business environment for Chinese enterprises investing in the United States.”
