Trump issued the order against TikTok and a twin order against Chinese-owned app WeChat, which will take effect in 45 days, on Thursday night, citing security and privacy concerns related to the apps.
"We are shocked by the recent executive order, which was issued without any due process," TikTok said in a statement. "For nearly a year, we have sought to engage with the U.S. government in good faith to provide a constructive solution to the concerns that have been expressed."
What the company found instead was that the "administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes and tried to insert itself into negotiations between private businesses," the statement continued.
The ban stems from concerns related to technological vulnerabilities discovered in the app earlier this year that have since been fixed as well as China's 2017 National Intelligence Law that requires Chinese companies and citizens to comply with information requests from the CCP.
U.S. officials have argued that because a Chinese tech company owns TikTok, the 2017 law could hypothetically put American users' personal data and information at risk. TikTok has repeatedly said it does not share user information with the Chinese government.
"We make our moderation guidelines and algorithm source code available in our Transparency Center, which is a level of accountability no peer company has committed to. We even expressed our willingness to pursue a full sale of the U.S. business to an American company," TikTok said in its statement.
TikTok has tripled its U.S. workforce since 2019 and plans to hire 10,000 more U.S. employees over the next three years.
The company added that Trump's executive order "sets a dangerous precedent for the concept of free expression and open markets," and the company "will pursue all remedies available to us in order to ensure that the rule of law is not discarded and that our company and our users are treated fairly – if not by the Administration, then by the U.S. courts."
The ban also stems from rising tensions between the U.S. and Chinese governments amid the coronavirus pandemic. Before the pandemic, the U.S. placed tariffs against Chinese goods for a number of issues including intellectual property (IP) theft, fentanyl imports and the country's treatment of Uyghurs and other Muslim minorities. China retaliated with more tariffs on U.S. goods.
The two countries were working to reach a deal before the virus spread and stronger tensions emerged, leading the Trump administration to start cracking down on Chinese firms with U.S. operations. The U.S. began finalizing plans to ban American companies from using equipment made by Chinese telecom companies Huawei and ZTE in July.
About 100 million Americans use TikTok; 41% of the app's total userbase is 16 to 24 years old.