Can Trump's executive order effectively prevent the enforcement of the TikTok ban?

During his second term, Trump signed an executive order to suspend the TikTok ban for 75 days.However, the bank's decree cannot overturn laws passed by Congress, so TikTok's future remains unclear.The ban overwhelmingly passed by the U.S. Congress in 2024 requires TikTok parent company ByteDance to sell its U.S. operations by January 19, otherwise it will be completely banned.The ban also imposes heavy fines on service providers and app stores, such as Google(GOOGL) and Apple(AAPL), with violations amounting to US$5,000 per user and potentially putting companies in billions of dollars in legal liability.In addition, legal scholar Alan Rozenshtein pointed out that administrative orders only provide limited legal protection, and courts usually do not regard such administrative orders as binding documents. Especially when it involves national security issues, the law tends to support the scope of power of Congress or the executive agency.

Dilemma between Silicon Valley giant Google and Apple

Faced with potential legal and financial risks, Google and Apple have not yet made a clear statement on this matter.Google chose to decline the comment, and Apple has not responded to inquiries.If TikTok downloads continue to be available in the app store, these technology giants will face the threat of congressional sanctions and heavy fines.Expert Timothy Edgar said relying on executive orders to continue operations was an "extremely high-risk gamble" because if courts or government agencies choose to enforce the injunction, these companies could suffer severe financial losses.In addition, shareholders may also question the company's legal risk management, which may lead to a decline in internal litigation or market trust.

Will Musk or Ellison buy TikTok?

Trump said at a press conference that he would be happy to see Musk or Oracle (ORCL) Chairman Ellison acquire TikTok's U.S. operations.According to analysis, TikTok's business in the United States is valued at approximately US$50 billion, but if long-term operating licenses can be obtained, its value may be as high as US$1 trillion.Musk is not only a key political and financial supporter of Trump, but also the owner of social media app X(formerly Twitter).If Musk takes over TikTok, it will further consolidate its influence in the technology and social media fields.On the other hand, Oracle is TikTok's cloud infrastructure provider in the United States, and Ellison, an entrepreneur who has long supported Trump, is also regarded as a potential strong buyer.Trump mentioned that he hopes future acquisitions will bring greater economic benefits to the United States and proposed that "the acquirer return part of the proceeds to the United States as a price for operating licenses." This proposal once again triggered attention to the transparency of TikTok transactions.

Will ByteDance choose to sell TikTok's U.S. business?

As of now, ByteDance has not made it clear whether it will sell TikTok.However, sources pointed out that the China government may support Musk's acquisition of TikTok to reduce U.S. concerns about the influence of China companies.If this potential deal comes true, it will need to overcome multiple obstacles, including political and commercial negotiations between China and the United States, approval from U.S. regulators, and market doubts about TikTok's future competitiveness.Despite this, experts believe that ByteDance may not be able to maintain its current controlling stake under legal and market pressure.

What enlightenment does the TikTok incident have for the market and investors?

Behind the TikTok ban is the ongoing confrontation between U.S. -China technological competition and national security policies.For technology investors, the controversy could mean that short-term fluctuations coexist with long-term investment opportunities:

1. Beneficiaries: If the transaction is successful, potential acquirers such as Tesla (TSLA), Oracle or other related companies may experience a significant increase in performance and market value.
2. Risk party: If the ban is restored, service providers such as Google and Apple may suffer losses due to future fines and lawsuits.In addition, ByteDance could face the worst-case scenario of a U.S. market exit.

Investors should pay attention to the progress of Sino-US relations, domestic legislative developments in the United States, and the further development of potential transactions to seize market opportunities.