As TikTok faces a looming ban in the United States, Chinese officials are reportedly evaluating contingency plans, including the potential sale of the app’s U.S. operations to billionaire Elon Musk.
Background
The U.S. government has raised national security concerns over TikTok’s Chinese ownership, leading to legislative actions that could result in the app being banned unless its U.S. operations are divested by January 19, 2025. In response, ByteDance, TikTok’s parent company, has appealed to the U.S. Supreme Court to overturn the impending ban.
Potential Sale Discussions
According to sources familiar with the matter, Chinese officials have internally discussed the possibility of allowing a trusted non-Chinese entity, such as Elon Musk, to acquire TikTok’s U.S. operations if the company cannot prevent the ban. One scenario under consideration involves Musk’s social media platform, X (formerly Twitter), taking over TikTok’s U.S. business, which boasts over 170 million users.
Official Responses
TikTok has consistently stated its intention not to sell its U.S. operations. A spokesperson for the company referred to reports of a potential sale to Musk as “pure fiction.”
Strategic Considerations
While Beijing strongly prefers that TikTok remains under ByteDance’s ownership, the discussions indicate a willingness to explore alternative solutions to maintain the app’s presence in the U.S. market. Engaging with Musk, who has significant business interests in China and is considered a trusted figure, could be seen as a strategic move to navigate the geopolitical complexities surrounding TikTok’s operations.
Next Steps
The situation remains fluid, with the U.S. Supreme Court’s impending decision playing a critical role in determining TikTok’s future in the United States. Both ByteDance and Chinese officials are closely monitoring developments and preparing for various outcomes, including potential negotiations with interested parties like Elon Musk.
