TikTok Files Challenge against Canadian Government Order to Dissolve its Business in the Country

The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
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TikTok Files Challenge against Canadian Government Order to Dissolve its Business in the Country

The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)

TikTok has challenged a Canadian government order to shut down the Chinese video-sharing app's business operations in the country that was imposed over national security concerns.

The company said Tuesday that it filed an application for a judicial review with the Federal Court in Vancouver on Dec. 5, which seeks to set aside the order for TikTok to wind-up and cease its business in Canada.

The Canadian federal government last month announced it was ordering the dissolution of TikTok Technology Canada Inc. after a national security review of its Chinese parent company ByteDance Ltd, The AP reported.

The government is not blocking access to the TikTok app, which will continue to be available to Canadians. TikTok said it has 14 million users in Canada, which is about a third of the population. It has offices in Toronto and Vancouver.

The wildly popular platform is owned by ByteDance, a Chinese company that moved its headquarters to Singapore in 2020, but is under increasing pressure in the West. It's facing a possible ban in the US and intensifying scrutiny in Europe over issues including election influence campaigns allegedly coordinated by Moscow.

TikTok argues in its court application, which was posted online, that Industry Minister François-Philippe Champagne's decision was “unreasonable” and “driven by improper purposes.” It says the order is “grossly disproportionate” and the the national security review was “procedurally unfair.”

The review was carried out through the Investment Canada Act, which allows the government to investigate foreign investment with potential to harm national security.

Champagne said in a statement at the time that the government was taking action to address “specific national security risks,” but did not elaborate. His office said in response to the filling that the government’s decision was informed by a “thorough national security review and advice from Canada’s security and intelligence community.”

TikTok said Champagne “failed to engage with TikTok Canada on the purported substance of the concerns" that led to the order.

It argues the government ordered “measures that bear no rational connection to the national security risks it identifies" and that the reasons for the order “are unintelligible, fail to reveal a rational chain of analysis and are rife with logical fallacies.”

The platform says there were “less onerous” options than shutting down its Canadian business, which it said would eliminate hundreds of jobs, threaten business contracts and “cause the destruction of significant economic opportunities."



China Vows to Protect its Rights against US Chip Probe

A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
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China Vows to Protect its Rights against US Chip Probe

A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

China's commerce ministry vowed on Monday to take all necessary measures to safeguard its rights and interests in response to the United States' investigation into the Chinese semiconductor industry.

The investigation will disrupt global chip supply chains and harm the interests of US firms and consumers, the ministry statement said.

On Monday, the Biden administration announced a last-minute trade investigation into Chinese-made "legacy" semiconductors that could heap more US tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear, Reuters reported.

The "Section 301" probe, launched just four weeks before President-elect Donald Trump takes office on Jan. 20, will be handed over to his administration in January for completion, Biden administration officials said.

The effort could offer Trump a ready avenue to begin imposing some of the hefty, 60% tariffs that he has threatened on Chinese imports.

Departing President Joe Biden has already imposed a 50% US tariff on Chinese semiconductors that starts on Jan. 1. His administration has tightened export curbs on advanced AI and memory chips and chipmaking equipment to China and also recently increased tariffs to 50% on Chinese solar wafers and polysilicon.