The deal would see Chinese ownership of TikTok reduced to 20 percent in the United States, and Beijing on Friday reiterated a call for "open, fair" treatment on the issue.

The phenomenally popular short-form video platform says it has over 170 million US users -- nearly half the population of the world's top economy.

But national security concerns have led Washington to try and wrest TikTok's US operations from the hands of Chinese parent company ByteDance.

At a signing ceremony at the White House on Thursday, Trump said the US version of the app would be run by "highly sophisticated" investors, all his allies, while insisting that the app would not toe any political line.

The investors would include Larry Ellison, the founder of cloud giant Oracle, tech investor Michael Dell and media tycoon Rupert Murdoch.

"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.

"If I could make it 100 percent 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.

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

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", it has helped the app grow into one of the world's most popular social media 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 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 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.

'Open, fair' 

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.

But 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.

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.

Beijing's foreign ministry spokesman Guo Jiakun reiterated that sentiment at a regular briefing on Friday.

"We hope the US will provide an open, fair and non-discriminatory business environment for Chinese companies investing in the United States," he said.

TikTok did not immediately respond to a query seeking comment and confirmation.