Washington DC - Donald Trump on Thursday signed an executive order laying out a proposed deal for a US version of TikTok that would see Chinese ownership reduced to 20% and put control in the hands of the president's allies.

At a signing ceremony at the White House, Trump said the US version of the app would be run by "highly sophisticated" investors including Larry Ellison, the founder of cloud giant Oracle, tech investor Michael Dell, and media tycoon Rupert Murdoch.

Investment firm Silver Lake Management and Silicon Valley powerhouse Andreessen Horowitz are also thought to be part of the deal.

"The proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security," Trump stated in the order, which affects TikTok's approximately 170 million American users.

The lineup of investors mentioned are all Trump allies, but he insisted that the app would not toe any political line.

"If I could make it 100% MAGA I would, but it's not going to work out that way unfortunately. No... every group, every philosophy, every policy, will be treated very fairly," Trump told reporters.

The president confirmed that the US version of TikTok would feature a homegrown model of the app's prized algorithm, often described as TikTok's "secret sauce" that helped it grow into one of the world's most popular platforms in just a few years.

A White House official said Monday the algorithm would be "continuously monitored" to ensure it is "not being unduly influenced."

The new set-up for TikTok is in response to a law passed under Trump's predecessor, Joe Biden, that has forced its Chinese owner ByteDance to sell its US operations or face a ban in its biggest market.

US policymakers, including Trump in his first presidency, have warned that China could use TikTok to mine data from Americans or exert influence through its state-of-the-art algorithm.

Trump has repeatedly delayed enforcement through successive executive orders, most recently extending the deadline until December 16, 2025.

Thursday's order extended that deadline still further, granting a 120-day enforcement delay to complete the transaction by January 23.

Vice President JD Vance, the one-time venture capitalist who led the team to find a solution for TikTok, said the US entity would be valued at about $14 billion, though he added that it would ultimately be up to the investors to figure out its price.

When asked if the Chinese authorities had signed off on the deal, Trump said that President Xi Jinping gave his green light in a phone call last week.

"(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," he said.

TikTok did not respond to a query seeking comment and confirmation, and Beijing has remained largely silent on any deal.

After the Trump-Xi call, state broadcaster CCTV said Xi emphasized to his US counterpart that China supports market-based negotiations that align with Chinese laws.