TikTok CEO Urges Emergency Talks with Canada’s Industry Minister to Avert Shutdown
Canada’s TikTok users may soon see significant changes to the platform’s operations as CEO Shou Chew appeals directly to Industry Minister Melanie Joly to intervene in a federal order to dissolve TikTok’s Canadian business. The plea, delivered in a July 2 letter obtained by the Canadian News Agency, comes as the social media giant faces increasing scrutiny over national security concerns.
National Security Review Sparks Controversy
In November, the Canadian government ordered TikTok’s Canadian operations to be dismantled following a national security review of its parent company, ByteDance Co., Ltd., a Chinese firm. Despite the directive, the TikTok app remains accessible to Canada’s 14 million users, though the company’s long-term presence in the country is now in jeopardy. Chew argues the order is “outdated and counterproductive,” stemming from a different geopolitical landscape when a potential U.S. ban loomed larger.
The Canadian review, initiated in fall 2023 but not publicly disclosed until March 2024, coincided with a U.S. House of Representatives bill that proposed a ban on TikTok if ByteDance failed to divest its shares. However, U.S. President Donald Trump subsequently extended the deadline for a potential U.S. ban for a third time in June, shifting the context upon which Canada based its decision.
Economic Impact and Job Losses Loom
Chew warned Joly that without her intervention, TikTok would be forced to lay off over 350 Canadian employees, halt direct investment in the country, and significantly reduce support for Canadian creators and cultural institutions. “The liquidation process is approaching a critical moment quickly,” Chew wrote, emphasizing the urgency of the situation. Demonstrating this commitment, TikTok announced on July 7 it would withdraw sponsorships from prominent Canadian events, including the Juno Awards and the Toronto International Film Festival.
Legal Challenge and Lack of Transparency
TikTok is actively challenging the closure order in federal court, filing a lawsuit in December arguing the government’s measures lack a “reasonable connection” to the identified national security risks. The initial national security review was conducted under the Canadian Investment Act, which allows scrutiny of foreign investments deemed potentially dangerous to national security. However, former Industry Minister François-Philippe Champagne, while stating the government was addressing “specific national security risks,” did not elaborate on the nature of those concerns.
Chew maintains there is no evidence to suggest TikTok poses a security threat to Canada and criticizes the government’s unwillingness to discuss potential solutions. He proposes strengthening data security protocols and increasing transparency and oversight as viable alternatives to a complete shutdown. Despite TikTok’s efforts to engage with Canadian authorities – including participation in parliamentary committees, training law enforcement, and collaborating with the Canadian Election Agency – Chew asserts the government has shown no inclination toward dialogue.
A Potential Outlier Among Allies?
Chew fears Canada risks becoming an outlier among its allies if it proceeds with the ban, particularly given the evolving situation in the United States. While the app may remain available to Canadian users, TikTok will no longer maintain a physical presence within the country, eliminating a direct line of communication with policymakers and regulators.
The company emphasizes its past contributions to Canadian society, highlighting the work of its local team in engaging with authorities and providing support during federal elections. As the situation unfolds, the future of TikTok in Canada remains uncertain, hinging on the outcome of ongoing legal challenges and the possibility of a productive dialogue between the company and the Canadian government.
