AsianFin -- U.S. President Donald Trump signed an executive order on Thursday that paves the way for a deal that could see American companies assume majority ownership of the popular video-sharing app TikTok.

While the core terms of the agreement have been reached, both sides will likely need more time to finalize the deal as they address legal and financial details. Trump emphasized the deal's American ownership, stating, “This is going to be American-operated all the way.” He also expressed appreciation for China’s role in the deal, stating, “I have great respect for President Xi, and I very much appreciate that he approved the deal, because to get it done properly, we really needed the support of China and the approval of China.”

Under the framework outlined in the executive order, ByteDance, TikTok’s Chinese parent company, along with its affiliates, will hold less than 20% ownership of TikTok. Meanwhile, certain investors, likely American entities, will retain an 80% stake in the company. This arrangement is designed to fulfill the "qualified divestiture" requirements needed for TikTok to comply with U.S. federal law.