TikTok flip-flop: What’s the president’s power over foreign companies?

If you’d never heard of TikTok before the coronavirus pandemic sent us all into our homes for months, you’ve probably heard of it now. With little to do at home, millions of Americans turned to TikTok to create and watch short, fun videos of mostly teenagers mostly dancing, lip syncing or pranking their parents.
While this social video app may seem harmless when you’re somehow mindlessly scrolling through hours of 30-second antics, the Trump administration insists it might not be so harmless after all.
See, TikTok is owned by a Chinese company, ByteDance. For months, the Trump administration has worried that the Chinese government could gain access to to the user data of Americans who use the app. The United States has also raised concerns over the potential for Chinese censorship on TikTok.
Late last week, in response to all of this, President Trump said that he planned to ban TikTok altogether — that he would outright ban a very popular social media app used by 100 million Americans. So, naturally, many of our listeners asked,“Can he do that?”It turns out, that answer might be moot. Because, in typical Trump fashion, pretty soon after he threatened the ban, the president changed his mind.
On Sunday, Trump backtracked and said he might not ban the app altogether. Instead, he might force ByteDance to sell its U.S. portion of TikTok. Microsoft confirmed that it is in talks with ByteDance to buy those U.S. assets, and the president says the two companies have 45 days to come to a deal.
So, how does the president have the power to force a foreign company to sell a portion of itself? And TikTok is a social media tool — a speech tool — used by individual Americans … how does that complicate the president’s power over it? Plus, and perhaps most critically, is TikTok a serious national security threat to the United States?
On this episode of the“Can He Do That?” podcast, technology reporter Rachel Lerman explains why the president wants to block TikTok and James Lewis, senior vice president at the Center for Strategic and International Studies, explains how he can take steps to change things for the Chinese-owned app.
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