US President Donald Trump has issued a pair of executive orders that would ban any US transactions with the Chinese companies that own TikTok and WeChat. The announcement comes days after he said he would be forcing ByteDance, the Chinese company who owns TikTok, to sell the application to a U.S. owner.
According to reports from The Guardian, the Executive orders were issued on Thursday, August 6, and prohibits “any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States,” beginning in 45 days from now.
“The spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China (China) continues to threaten the national security, foreign policy, and economy of the United States,” Trump wrote in a letter to House Speaker Nancy Pelosi.
ByteDance now have a deadline, 15 September, to either choose to sell all of US operations to a US firm or suffer the fate of an outright ban, similar to the actions India have taken against the video-sharing application.
An unknown source recently confirmed to Reuters that ByteDance executives value TikTok at around $50bn. Microsoft is reportedly interested in purchasing the application.
BREAKING: President Trump just issued an executive order “on Addressing the Threat Posed by TikTok.” It takes effect in 45 days, prohibits “any transaction” with ByteDance, the Chinese company that owns TikTok, and will almost certainly face legal challenges. pic.twitter.com/Ma9XOfYgOB
— Hunter Walker (@hunterw) August 7, 2020