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In the latest buzz around TikTok’s future in Canada, CEO Shou Chew has reached out directly to Industry Minister Mélanie Joly, seeking an urgent chat about the federal government’s recent order to shut down the company’s Canadian operations.
This request comes on the heels of a national security review that led to the directive, which Chew argues is no longer relevant.
What’s Behind the Shutdown Order?
At the heart of Chew’s argument is the claim that the order was issued during a time of heightened anxiety, particularly regarding a potential U.S.
ban on TikTok. In a letter dated July 2, he pointed out that the landscape has changed drastically since then, insisting that the November directive to wind down TikTok’s Canadian operations feels outdated. He raises a compelling point: enforcing this order would leave Canada isolated, setting it apart from its allies in the Five Eyes intelligence-sharing alliance.
The Canadian government, as part of its national security review, looked into TikTok’s parent company, ByteDance Ltd., concluding that the app’s ongoing operations could pose risks. However, Chew argues that the government hasn’t provided solid evidence to back up claims that TikTok threatens Canadian security.
Instead, he suggests that these concerns could be addressed through better data security measures and increased transparency.
The Ripple Effect on Canadian Jobs and Culture
Chew’s letter also raised alarms about the potential fallout for TikTok’s Canadian operations.
Without intervention from Minister Joly, he warned that the platform would have no choice but to lay off over 350 employees, halt investments in the country, and pull back support for local creators and cultural projects. This situation is getting serious, and Chew is urging a re-evaluation of the shutdown order to prevent significant economic harm.
Following the government’s directive, TikTok made headlines by withdrawing sponsorship from several prominent Canadian arts organizations, hinting at the serious consequences of a full operational exit. The company’s ties with Canadian creators and institutions have been vital in nurturing local talent and fostering community connections. As Chew emphasizes, having a local presence allows for accountability and collaboration with Canadian policymakers and regulators—a dynamic that would vanish if they were forced to shut down.
Legal Battles and What’s Next?
In addition to calling for dialogue, TikTok is also taking the fight to Federal Court. Their legal challenge, which kicked off in December, argues that the government’s shutdown order lacks a logical connection to the claimed national security risks. Chew pointed out that the government’s review was conducted under the Investment Canada Act, which gives the government the power to evaluate foreign investments for potential national security issues.
Despite the hurdles ahead, Chew remains optimistic about finding a constructive way forward. He has urged the Canadian government to engage in talks that could yield practical solutions instead of pushing through an order he sees as excessive and out of step with today’s realities. As this situation develops, the stakes are high for TikTok, its employees, and its user base in Canada, with possible changes in engagement strategies and operational models looming on the horizon.