In the ongoing data security controversy, TikTok recently announced its new operational strategy in the United States, aimed at alleviating the U.S. government's concerns about user data privacy while maintaining its continuous growth in the U.S. market.



The core of this new plan is to establish a joint venture called TikTok USDS Joint Venture. This company will focus on handling the data security, privacy protection, and related compliance matters of U.S. users. In terms of equity structure, the new U.S. investors will hold 50% of the shares, existing U.S. shareholders of ByteDance will hold 30.1%, while ByteDance itself will retain 19.9% of the shares, becoming the single largest shareholder.

This arrangement cleverly finds a balance between U.S. regulatory demands and TikTok's business development. By allowing American investors to hold shares, TikTok demonstrates its commitment to data security to the U.S. government.

At the same time, TikTok's technological innovations and business operations have not been affected. ByteDance will continue to be responsible for advertising, e-commerce, brand partnerships, and other business activities through its wholly-owned subsidiary BD TikTok US, as well as provide necessary technical support. The two companies will maintain close ties through intellectual property licensing and revenue sharing.

This model can be summarized as follows: data security and privacy protection are led by the American side, while technological innovation and business operations are still overseen by ByteDance. This dual-track operational approach not only addresses the concerns of the U.S. government but also ensures TikTok's continued innovative capability in the U.S. market.

However, whether this new framework can completely resolve the challenges TikTok faces in the United States still requires time to test. After all, finding a perfect balance between globalization and localization, technological innovation and data security is not an easy task. Regardless, this move by TikTok reflects its determination and wisdom in seeking survival and development in a complex international environment.
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