Addressing the Threat Posed by TikTok and the Technology Supply Chain

Aug 11, 2020

Summary

Bans any business deals with TikTok's parent company, ByteDance Ltd., to protect America's national security from data collection by China.

What problem does this solve?

The mobile app TikTok, owned by a Chinese company, collects large amounts of user data, which could allow China to spy on Americans and spread false information. This order protects national security by banning business deals with TikTok's owner, stopping the data collection and potential spying.

What does this order do?

Prohibits transactions with ByteDance Ltd.

Bans any transaction by any person in the U.S. with ByteDance Ltd., the Chinese parent company of TikTok, or its subsidiaries.

Identifies prohibited transactions

Requires the Secretary of Commerce to identify the specific types of transactions that will be banned under this order.

Bans attempts to avoid the order

Forbids any action taken by a U.S. person that is intended to get around the ban or cause a violation of the order.

Authorizes the Secretary of Commerce

Gives the Secretary of Commerce the power to create rules and use all powers granted by the International Emergency Economic Powers Act (IEEPA) to carry out this order.

Who does this affect?

TikTok users in the United States
ByteDance Ltd. and its subsidiaries
U.S. companies and individuals doing business with ByteDance Ltd.

What is the real world impact?

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Protects national security

Prevents the Chinese government from accessing the personal data of Americans, including federal employees, which could be used for spying or blackmail.

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Combats foreign influence

Aims to stop the spread of disinformation campaigns and censorship by the Chinese Communist Party on a platform popular in the United States.

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Sets a precedent for foreign tech

Establishes a framework for taking action against other foreign-owned technology companies that are seen as a threat to national security, potentially impacting international tech business.

When does this start?

This order sets multiple deadlines that begin 45 days after it was signed on August 6, 2020.

Ban on transactions begins

Starting 45 days after August 6, 2020, all transactions with ByteDance Ltd. are prohibited.

Identification of banned transactions

Within 45 days of August 6, 2020, the Secretary of Commerce must publish a list of the specific transactions that are banned.