TikTok denies these allegations. It was stated that the data of US users are stored in the USA and Singapore, and it is outside of Chinese law. Experts say, however, that the current law in China may force Chinese companies to transfer data to the government.
ByteDance has been negotiating for a while to sell the US, Canada, Australia and New Zealand division of TikTok to Microsoft. Trump announced in a statement this week that he gave the Chinese company 45 days for this sale.
The law Trump signed came after Secretary of State Mike Pompeo said he wanted untrusted China-based apps like WeChat and TikTok to be removed from app stores in the US. Pompeo said now his ministry will work with other government agencies to limit the ability of Chinese cloud service providers to collect, store and operate data in the United States.