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August 17, 2020

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Alibaba next on Trump鈥檚 ban list

US President Donald Trump said on Saturday he could exert pressure on more Chinese companies such as technology giant Alibaba after he moved to ban TikTok.

Asked at a news conference whether there were other particular China-owned companies he was considering a ban on, such as Alibaba, Trump replied: “Well, we’re looking at other things, yes.”

Trump has been piling pressure on Chinese-owned companies, such as by vowing to ban short-video app TikTok from the United States. The United States ordered its Chinese owner ByteDance on Friday to divest the US operations of TikTok within 90 days, the latest effort to ramp up pressure over concerns about the safety of the personal data it handles.

“There is credible evidence that leads me to believe that ByteDance ... might take action that threatens to impair the national security of the United States,” Trump said in the order. ByteDance has repeatedly denied the accusation.

Trump’s latest move comes on top of an executive order he issued last week that would prohibit certain transactions with TikTok unless ByteDance divests it within 45 days. ByteDance is already in talks to sell the North America, Australia and New Zealand operations of TikTok to Microsoft.

The new order adds to pressure for ByteDance to divest TikTok, and legally buttresses the US government’s crackdown on the Chinese-owned social media app. It authorizes US officials to inspect TikTok and ByteDance’s books and information systems to ensure the safety of personal data while the sale talks are ongoing.

ByteDance said on Friday in response to the order that it is used by 100 million Americans “because it is their home for entertainment, self-expression, and connection. We’re committed to continuing to bring joy to families and meaningful careers to those who create on our platform for many years to come.”

Last year, the Committee on Foreign Investment in the United States, a US government panel that reviews deals for potential national security risks, opened a new review of ByteDance’s acquisition of app Musical.ly in 2017. That deal created TikTok in its current form.

Treasury Secretary Steven Mnuchin said on Friday the order also requires ByteDance to divest “any data obtained or derived from TikTok or Musical.ly users in the United States.”

He said CFIUS “conducted an exhaustive review of the case and unanimously recommended this action to the president in order to protect US users from exploitation of their personal data.”

The Trump administration has stepped up its efforts to purge what it deems “untrusted” Chinese apps from US digital networks. Beyond TikTok, Trump has also issued an order that would prohibit transactions with Tencent’s WeChat.


 

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