TikTok sees the Canadian government's decision as manipulative.
TikTok said on Thursday that it will challenge Canada's order to shut down its operations in Canada, saying that Ottawa's move of destroying hundreds of well-paying local jobs is not in anyone's best interest.
Chinese observer said that Canada's move, which lacked a factual basis, is another “case of manipulating the concept of national security” and will only serve to “undermine Canada's vitality and creativity”, according to Esnc.cn.
On Wednesday, Canada ordered Chinese-owned TikTok's business in the country to be dissolved, citing national-security risks, but added the government was not blocking Canadians' access to the short-video app or their ability to create content.
Industry Minister François-Philippe Champagne said the dissolution order was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may harm Canada’s national security. He said the decision was based on information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners.
TikTok (owned by Chinese company ByteDance), moved its headquarters to Singapore in 2020. TikTok is wildly popular with young people, but its Chinese ownership has raised fears that Beijing could use it to collect data on Western users or push pro-China narratives and misinformation.
TikTok faces intensifying scrutiny from Europe and America over security and data privacy. It comes as China and the West are locked in a wider tug of war over technology ranging from spy balloons to computer chips.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times that overextending national security measures could actually heighten security risks by reducing effective market supply and competition.
"Any company investing in Canada expects a fair, equitable, and predictable environment," Zhou said. "Taking this approach sets a harmful precedent that could negatively impact the innovation and diversity of Canada's economy."
On October 1, Canada imposed a 100 percent duty on electric vehicle imports from China. On the same day, the Canadian government published the finalized list of Chinese steel and aluminum products that will be subject to a 25 percent surtax, effective October 22.
China's Ministry of Commerce stated on October 2 that these actions violate the principles of the market economy and fair competition, severely damaging normal trade and economic cooperation between Chinese and Canadian businesses.
