TikTok’s CEO is seeking an urgent meeting with Industry Minister Mélanie Joly as the company prepares to wind down its Canadian operations under a federal shutdown order issued last year.
In a letter dated July 2 and obtained by The Canadian Press, TikTok CEO Shou Chew requested an in-person meeting with Joly within two weeks, warning the company is nearing a “critical juncture” in its wind-up process.
TikTok was ordered to cease Canadian operations in November 2024, following a national security review of the platform’s Chinese parent company, ByteDance Ltd.
The Investment Canada Act was used to make the decision. The act permits the federal government to restrict foreign investments that could pose a risk to national security.
Chew argued the decision was based on outdated assumptions, particularly regarding U.S. efforts to ban TikTok.
“There is no upside to this outdated and counterproductive government order, which was issued under a different government and in a different era,” he wrote.
He said the directive was shaped by “assumptions about TikTok’s future in the United States, which no longer hold true.”
In June, U.S. President Donald Trump extended a deadline for ByteDance to divest its American operations, delaying a possible ban.
Chew suggested Canada now risks becoming an outlier among its Five Eyes intelligence-sharing allies.
Without federal intervention, TikTok says it will be forced to lay off more than 350 employees, halt all direct investments, and close its Canadian offices.
The app would remain available to users, but without a local presence or regulatory accountability.
TikTok is also challenging the shutdown in federal court.
The company argues there is no evidence of wrongdoing, and that the order fails to outline specific security risks.
The federal order has already had visible consequences.
On July 7, TikTok Canada announced it was pulling out as a sponsor of several major arts and culture organizations, including the Juno Awards, the Toronto International Film Festival (TIFF), and the National Screen Institute’s Accelerator for Indigenous Creators.
The company has invested millions of dollars in domestic partnerships over the past five years.
Chew emphasized the platform’s economic role in Canada, referencing a new economic impact study by consulting firm Nordicity.
The report found that TikTok contributed $2.3 billion to Canada’s GDP in 2024, supporting over 19,000 full-time jobs.
Nordicity reported that TikTok Canada generated $1.4 billion in GDP from 2019 to 2024 and contributed $340 million in tax revenue.
SMBs using the platform accounted for $1.4 billion in GDP last year and reported a $950 million increase in revenue linked to marketing on TikTok.
Chew warned that without a presence in Canada, the company would no longer be subject to domestic regulation.
“TikTok maintaining a presence in Canada means there is a local team who is accountable to Canadian policy-makers and authorities,” he said.