Trump will prohibit transactions with Bytedance starting from September 20th.
President Trump has newly signed a new executive order which will block all ongoing and future transactions with the Chinese based tech company, Bytedance which is TikTok's parent company, In a bid to address the the emergency with respect to information and communication technology chain supply.
This move comes after months of escalating tensions which saw the US Secretary Of State, Mike Pompeo, and others at the white house warned that TikTok portrayed as a national security threat because of the parent company Bytedance which is based in Chinese territory.
The order signed by President Trump reads;
"The spread of the apps controlled by the Chinese government continues to threaten the national security, foreign policy and economy of the United States.The United States must take aggressive action against the owners of TikTok to protect our national security"
The new order signed by the President of the US will not take place immediately, but 45 days after.
This order might thwart the hope that Microsoft has in acquiring TikTok if the deal is not concluded before Trump's deadline, In both orders President Trump named the International Emergency Economic Power Act as authority for the move as well as the National Emergencies Act, Effectively naming TikTok's continued operation within the United States as a national emergency.
The executive branch has the power to levy sanctions against individuals and cooperation by placing them on the entity list just like the US did to Huawei and ZTE last year.
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