A U.S. federal appeals court on Friday upheld a law requiring ByteDance, the Chinese parent company of TikTok, to divest its U.S. operations by January 19, 2025, or face a nationwide ban.
The decision moves TikTok, which has 170 million American users, closer to being banned unless the divestment is completed in time.
The Chinese Embassy in Washington criticized the law, describing it as “commercial robbery” and cautioning the U.S. to handle the issue carefully to avoid damaging bilateral relations. The embassy stated that the law undermines mutual trust between the countries and could impact future cooperation.
The U.S. Justice Department, however, defends the law as necessary to counter national security risks it associates with ByteDance’s ownership.
TikTok has announced plans to appeal the decision to the Supreme Court. The law prevents app stores and hosting services from supporting TikTok if the divestment deadline is not met.
Attorney General Merrick Garland called the ruling an important measure for addressing potential threats linked to Chinese influence on data and content accessed by Americans.
Free speech groups, including the American Civil Liberties Union, have raised concerns over the ruling, stating that a TikTok ban would infringe upon the First Amendment rights of millions of Americans. In its analysis, the court highlighted that TikTok’s reach gives China influence over public discourse, which it said conflicts with the principles of free speech.
The decision adds to heightened trade tensions between the United States and China. Recent actions include U.S. restrictions on China’s chip industry and China’s bans on critical mineral exports to the U.S. The Chinese government has warned that such measures could escalate tensions further.
ByteDance, valued at $268 billion in late 2023, must navigate the complex divestment process while facing domestic restrictions from Beijing.
If banned, TikTok’s absence may benefit platforms like Meta’s Instagram and Google’s YouTube, as indicated by their stock price increases following the ruling.
The law also gives the U.S. government greater authority to restrict other foreign-owned apps seen as security risks. Chinese officials have described this broader effort as discriminatory and aimed at undermining Chinese companies’ global competitiveness.
