ByteDance is moving to launch a separate US-specific version of its popular video-editing app, CapCut, as pressure mounts under the 2024 divestment law requiring the Chinese company to split from its American operations or face an outright ban.
The upcoming version, named “CapCut US,” will separate American users from ByteDance’s global platform, marking another major development in the company’s broader restructuring to comply with US demands.
According to documentation reviewed by Business Insider, the company is preparing to reconfigure CapCut for American users, essentially rebuilding the app as a stand-alone product. The move is reportedly part of a broader strategy that includes a similar plan to spin off a US-only version of TikTok. ByteDance has not publicly commented on the restructuring efforts, but the shift indicates that the company is trying to preempt enforcement actions while continuing to operate its apps in the lucrative US market.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
The development comes just days after President Donald Trump confirmed he had identified a group of wealthy American investors interested in acquiring TikTok. Speaking to Fox News in late June, Trump said he was backing the bid and noted that discussions with China about the proposed sale could begin as soon as this week. A deal would require approval from both US and Chinese regulators, a hurdle that has previously derailed similar transactions under the former administration.
Trump’s announcement and ByteDance’s push to separate its US-facing apps also follow the Supreme Court’s January decision that upheld the divestment law. After the ruling, Trump temporarily halted enforcement, allowing ByteDance more time to restructure or find acceptable buyers for its American assets.
CapCut’s Critical Role in ByteDance’s US Strategy
CapCut, which has been downloaded over 1 billion times globally via Google Play and holds the number one spot in Apple’s US App Store in the photo and video category, is far more than a TikTok companion app. It has become a vital tool for content creators, influencers, and digital marketers, offering viral video templates and seamless integration with TikTok and other platforms.
The decision to develop “CapCut US” suggests ByteDance sees the app as strategically valuable and is eager to ensure its continued presence in the American market. However, the logistics of splitting the platform remain complex. It’s unclear if the US-only version will continue to offer the same global content library, algorithmic editing features, and syncing capabilities that have driven its popularity — or if it will be a scaled-back experience due to national security constraints.
TikTok’s US Clone Also in the Works
ByteDance’s parallel efforts to launch a US-only TikTok app — reported by The Information — reflect the same urgency. Creating standalone US versions of its flagship apps could potentially allow ByteDance to sidestep the full divestiture of assets and remain active in the market, depending on how regulators interpret compliance.
Still, many legal and regulatory questions linger. For example, would the US versions of TikTok and CapCut still share data or algorithms with ByteDance’s core operations in China? Would the new apps be governed independently, with different ownership structures, or would they simply serve as rebranded shells?
ByteDance has yet to reveal whether it will similarly spin off other apps like Lemon8 — its Instagram-style platform — or Gauth, its educational tool, both of which are also covered under the divestment mandate.
ByteDance’s challenge now extends beyond regulatory compliance — it must also convince users to make the switch. That may be difficult as rivals like YouTube and Meta move aggressively to capitalize on uncertainty. YouTube has expanded its Shorts platform with enhanced editing tools, while Meta’s CapCut-like app, Edits, is climbing in the App Store rankings.
In an ecosystem where creators are constantly seeking speed, innovation, and reach, convincing them to migrate to “CapCut US” could be a tough sell — especially if functionality or content access is limited compared to the global version.
A Test Case for Broader Decoupling
The launch of CapCut US and TikTok’s American counterpart may serve as test cases for whether the US government — and consumers — will accept tech decoupling as a viable solution to national security concerns. At the same time, the moves signal ByteDance’s willingness to compromise if it means preserving access to the massive and influential US market.
Whether this strategy satisfies lawmakers or leads to further scrutiny, will depend on the terms of any eventual sale and the transparency of ByteDance’s restructuring.
However, the rollout of CapCut US and its reception by American users — could offer an early glimpse into what a fragmented global tech landscape looks like under intensifying geopolitical pressure.