ByteDance will strike back against president Donald Trump's "illegal" executive order demanding it sell it sell its popular music-video app TikTok within 45 days or be banned from doing business in the U.S.
Trump late last week issued another executive order demanding Tencent Holdings Ltd. divest itself of its messaging service WeChat within 45 days or also be prohibited from doing business in the U.S.
In both orders Trump claimed both TikTok and WeChat were threats to U.S. national security. But American legal experts said this claim may have no legal foundation.
In TikTok's case Trump claims the app allows China intelligence agencies to spy on U.S. government employees and contractors. He alleges TikTok collects personal data for blackmail and conducts corporate espionage. Material it collects can be used for disinformation campaigns on behalf of China's communist government, he said.
On Friday TikTok threatened legal action. It said it was "shocked" by Trump's order and revealed it had received "no due process or adherence to the law" from his administration.
"We will pursue all remedies available to us in order to ensure that the rule of law is not discarded and that our company and our users are treated fairly - if not by the administration then by the U.S. courts," TikTok said in an online statement.
TikTok says Trump's executive order is based on unnamed reports with no citations. It said it had never shared user data with the China government nor censored content at its request.
It is willing to pursue a full sale of its U.S. business to an American company.
TikTok said it will defend the legitimate rights and interests of China businesses. TikTok said Trump's executive order set a dangerous precedent contrary to the concept of free expression and open markets.
TikTok said the Executive Order risks undermining the trust of global businesses in the United States' commitment to the rule of law, which has boosted investment and spurred decades of American economic growth.
Tencent said it still has to decide on its course of action. Trump's order also restricts U.S. companies from conducting transactions with Tencent, as well as its subsidiaries.
"We are reviewing the executive order to get a full understanding," said a statement from Tencent, the video-game firm behind the massively popular Fortnite video game.
