Commerce Delays Prohibitions on TikTok; WeChat Prohibitions Suspended Due to Court Order

The Commerce Department delayed its ban on TikTok and a federal judge temporarily blocked the agency from imposing prohibitions on WeChat, complicating prohibitions that Commerce announced last week in response to President Donald Trump's executive order (see 2009180026). Commerce on Sept. 19 said it will “delay the prohibition of identified transactions” -- which were scheduled to take effect Sept. 20 -- until Sept. 27. The agency made the decision “in light of recent positive developments” surrounding the sale of TikTok.

Trump reviewed a deal involving Oracle, Walmart and TikTok to address TikTok’s “national security threat,” the Treasury Department said in a Sept.19 news release. Oracle will be responsible for TikTok’s “key technology and security responsibilities,” although approval of the deal is pending with the Committee on Foreign Investment with the U.S.

In addition, the administration’s prohibitions on WeChat were temporarily suspended after a U.S. judge issued an injunction Sept. 19. U.S. Magistrate Judge Laurel Beeler in San Francisco issued the order, saying WeChat raised “serious [First Amendment] questions” and adding that the “balance of hardships tips in the plaintiffs’ favor.” Commerce did not comment.

China's Commerce Ministry said it “firmly opposes” the U.S. prohibitions on WeChat and TikTok and urged the Trump administration to reverse the moves. “Without evidence, the US has repeatedly used national power to 'hunt' and suppress [WeChat and TikTok] for unwarranted reasons,” a ministry spokesperson said Sept. 19, according to an unofficial translation. “If the U.S. insists on going its own way, China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”