Canada on Wednesday ordered the dissolution of Chinese-owned TikTok's operations in the country, citing national security risks, but added that the government was not preventing Canadians from accessing the short-video app or from creating content. Innovation Minister Francois-Philippe Champagne said in a statement: "The government is taking action to address specific national security risks related to ByteDance Ltd.'s operations in Canada through the establishment of TikTok Technology Canada Inc."
Ottawa last year began reviewing TikTok's plans to invest and expand its business in Canada. ByteDance is the Chinese parent company of TikTok.
Under Canadian law, the government can assess the potential risks to national security of foreign investments, such as those proposed by TikTok. The government is legally prohibited from disclosing details of such investments.
"This decision was made based on information and evidence gathered during the review process, as well as advice from Canada's security and intelligence services and other government partners," Champagne added.
TikTok said it would challenge the order in court, with a TikTok spokesperson saying in a statement: "It is not in anyone's best interest to close TikTok's Canadian offices and destroy hundreds of local, high-paying jobs, and today's closure order will do exactly that."
Canada has banned the TikTok app on government-issued devices, saying it poses an unacceptable risk to privacy and security.
TikTok and ByteDance filed a lawsuit in U.S. federal court in May to try to block a law signed by President Joe Biden.
Biden signed the law on April 24, requiring ByteDance to sell TikTok by January 19 or face a ban. The White House stated that it hopes to end China's ownership of TikTok on the grounds of national security, rather than ending the operation of TikTok itself.