TikTok has recently become a victim of the ongoing economic trade war between China and the United States. Trump recently revealed he signed an executive order that will ban TikTok in a couple of weeks or force the owners to sell the business, preferably to a company in the United States.
TikTok has made it clear that they are going to challenge the order. The National Public Radio reported that TikTok could file a federal lawsuit that will challenge the order, this week.
The expectation is that they are going to file the order in the U.S. District Court for the Southern District of California. California is where TikTok have their American headquarters, which is why they are filing their lawsuit there.
An economic war
TikTok will most likely challenge the executive order, based on its constitutional validity. They will also challenge the claim that the video-sharing service poses a national security risk to the USA.
On Thursday last week, he signed executive orders that gave American companies 45 days to get out of their business relationships with TikTok’s parent company, Bytedance.
The executive order also targeted WeChat, the messaging service owned by the massive Chinese tech company, Tencent.
Clock is ticking
TikTok has already made it clear that they are opposed to the executive order, as soon as the news broke out about the signing of the order. The order was issued without any due process, and the risk is that it would undermine global businesses’ trust in the United States government.
The White House wants to use the International Emergency Economic Powers Act, and the National Emergencies Act to make this order possible.
If a company were to buy out TikTok, they would need anywhere from $20 to $50 billion. Only time will tell how this situation will end.
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