President Donald Trump signed an executive order on Monday seeking to delay by 75 days the enforcement of a ban of popular short-video app TikTok that was slated to be shuttered on January 19. While signing the order, Trump suggested the United States government should be a half owner of TikTok’s US business in return for keeping the app alive and warned that he could impose tariffs on China if Beijing failed to approve a US deal with TikTok. China has reportedly given a strong hint that it is ready to secure some deal with the US for TikTok.
“When it comes to actions such as the operation and acquisition of businesses, we believe they should be independently decided by companies in accordance with market principles,” Chinese Foreign Ministry spokesperson Mao Ning said at a press conference. “If it involves Chinese companies, China’s laws and regulations should be observed.” Mao noted that TikTok “has played a positive role in boosting US employment and consumption” and asserted that his country is hoping that “the US will earnestly listen to the voice of reason and provide an open, fair, just and non-discriminatory business environment for market entities from all countries.”
The executive order capped 48 hours of legal maneuvering and political intrigue that left millions of US TikTokkers struggling for answers about the fate of their app. The drama began Saturday when the short video app used by 170 million Americans was taken offline for users shortly before a law that said it must be sold by its Chinese owner ByteDance on national security grounds, or be banned, took effect on Sunday.
The next day Trump said he had plans to “Save TikTok”. Within hours, the company began restoring its service in the US, thanking the soon-to-be-inaugurated President for providing assurances to TikTok and its business partners that they would not face hefty fines to keep the app running.
The app and website were operational on Monday, but TikTok is still not available for download in the Apple, opens new tab and Google app stores. Trump’s order, signed hours after he was inaugurated on Monday, mirrors his earlier promises and directs the attorney general to not enforce the law to give his team time “to determine the appropriate course of action with respect to TikTok.”
But the legality of Trump’s executive order is unclear. The law requiring the divestiture was passed by big majorities in Congress, signed by President Joe Biden, and upheld by a unanimous Supreme Court.
The law also does not grant Trump authority to extend the deadline unless ByteDance has “binding agreements” to sell TikTok and it is unclear any agreements exist.
Representative Frank Pallone said Trump’s order is “circumventing national security legislation passed by an overwhelming bipartisan majority in Congress.”
The debate over TikTok comes at a tense moment in US-China relations. Trump has said he intends to place tariffs on China but has also indicated he hopes to have more direct contact with China’s leader. While signing the executive order Monday evening, Trump said that he “could see” the US government taking a 50 per cent stake in TikTok and as part of that stake, the US could police the site.
Trump added that if a deal isn’t approved by China, “there’s no value. So if we create that value, why aren’t we entitled to like half?” He said the company could be worth hundreds of billions of dollars. The US has never banned a major social media platform. The law passed last year gives the Trump administration sweeping authority to ban or seek the sale of other Chinese-owned apps.
