President Donald Trump signed an executive order late Monday, granting a 75-day extension to TikTok's divestment deadline.
The Washington Examiner reported that this extension suspends the shutdown of TikTok in the U.S., allowing more time to address national security concerns linked to its Chinese ownership.
Just before assuming office, President Trump was confronted with a divestment law aimed at severing ties between TikTok and its parent company, ByteDance, due to national security fears. This law required TikTok to secure a U.S. buyer by the deadline which coincided with Trump's first day in office.
Trump expressed criticism over the timing of the law, stating it limited his ability to evaluate its implications thoroughly. According to his executive order, he cited that "the unfortunate timing of section 2(a) of the Act — one day before I took office — interferes with my ability to assess the national security and foreign policy implications of the Act’s prohibitions before they take effect."
The new executive order restored TikTok's operations, which had temporarily halted service in the U.S. the Saturday before the order.
By Monday, the popular app was back online and available in app stores, pleasing its vast user base.
Following the extension, TikTok issued a statement thanking President Trump for providing "clarity and assurance" and highlighted the importance of the platform for American small businesses relying on it for marketing and sales.
A critical aspect of Trump's executive order is that it permits companies to continue providing services to TikTok without facing penalties during the extended period. This move ensures the app remains operational for its estimated 170 million U.S. users.
The decision faced criticism from some, such as Republican Senators Tom Cotton and Pete Ricketts. They jointly declared the delay as a "reckless abdication of responsibility" and argued that it fails to address the "very real national security risks posed by TikTok’s ties to the Chinese Communist Party."
On the international stage, China’s Foreign Ministry spokeswoman, Mao Ning, commented on the situation, stating, "When it comes to actions such as the operation and acquisition of businesses, we believe they should be independently decided by companies by market principles. If it involves Chinese companies, China's laws and regulations should be observed."
The extension also includes a clause suggesting President Trump might have the option to further extend the deadline, showcasing an ongoing deliberation process concerning TikTok's fate in U.S. operations.
This executive order is intertwined with broader geopolitical tensions and concerns over data privacy and control.
It reflects a significant stance on digital commerce and international relations, emphasizing the complex nature of cybersecurity issues today.
Trump's proposal for a 50-50 joint venture involving the U.S. government and TikTok's U.S. operations has raised eyebrows regarding its feasibility and compliance with both U.S. and international business norms.
The order explicitly states implementation should align with existing laws and available funding, hinting at potential bureaucratic hurdles moving ahead.
This decision occurs against a backdrop of a Republican-controlled Congress and a historically deferential Supreme Court, suggesting that Trump’s strategic use of executive power may face minimal political pushback.