On December 18, TikTok CEO Shou Zi Chew announced in an internal letter that TikTok has signed agreements with three investors to establish a new U.S.-based joint venture. The relevant procedures are set to be completed by January 22, 2026, marking the resolution of the “sell or ban” crisis.
Following this move, TikTok’s U.S. operations will be split into two entities. ByteDance’s TikTok U.S. division will continue to oversee core businesses such as e-commerce, advertising, and market operations in the United States. Meanwhile, the newly formed TikTok U.S. Data Security Joint Venture will be responsible for data protection, algorithm security, content moderation, and software assurance for TikTok’s U.S. operations. The intellectual property of the algorithm itself will remain with ByteDance and be licensed to the joint venture for use.
In terms of e-commerce development, TikTok Shop noticeably accelerated its global expansion pace in 2025. Beyond its existing presence in Southeast Asia, the United States, and the United Kingdom, the platform successively launched operations in several European countries, Mexico, Japan, and more throughout the year. Overall performance data from 2025 shows significant growth across all major regions of TikTok Shop, further demonstrating the explosive potential of content-driven e-commerce in diverse markets.
Additionally, in December, TikTok Shop announced an increase in deposit requirements for U.S. sellers and a rise in commission rates for the European Union region. These adjustments reflect, to some extent, TikTok Shop’s shift toward fee structures aligned with typical marketplace standards, raising entry barriers and advancing the platform toward more mature operations.
