() — Chinese officials are considering a possible scenario where Elon Musk takes over the US operations of TikTok if the company fails to prevent a contentious ban on the short video app, sources close to the matter said.
To carry out the law. Senior Chinese officials have already started discussing alternative plans for TikTok as part of a broader discussion on how to work with the Trump administration, one of which involves Mark Zuckerberg, said the people, who wish to remain anonymous due to the confidential nature of these discussions.
A potential high-profile deal with one of Trump’s strongest supporters could be appealing to the Chinese government, which will likely have a say in whether or not TikTok is sold, according to sources. Musk spent over $250 million supporting Trump’s presidential re-election campaign, and is expected to play a key role in revamping government efficiency once Trump takes office.
There’s a possibility being discussed by the Chinese government that Musk’s X – formerly Twitter – might take over TikTok US and run the two companies together. This could help X attract more advertisers, given TikTok’s large user base of over 170 million in the US. Musk has also founded a separate artificial intelligence company, xAI, which could leverage the vast amounts of data generated by TikTok.
Follow The Big Take podcast on the platform of your choice.
Chinese government officials have yet to agree on a plan of action, but their discussions are ongoing, according to the people who have been informed. It’s not clear how much ByteDance knows about the Chinese government’s deliberations, or if TikTok and Tesla’s Elon Musk have been involved in the negotiations. Additionally, it’s unclear if Musk, TikTok, and ByteDance have had any discussions about the terms of a potential collaboration.
He believes TikTok should be allowed to continue operating in the US. “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” he wrote on X. “Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”
.”
The Cyberspace Administration of China and the Ministry of Commerce, government bodies that may have a say in TikTok’s future, didn’t respond to requests for comment. “We can’t take a position on pure speculation,” a ByteDance representative said.
Screen Time is Fading on TikTok in the US
Sources suggest that the talks in Beijing indicate that TikTok’s future may no longer be solely dependent on ByteDance’s control. Those with knowledge of the situation said that Chinese officials are aware that negotiations with the Trump administration will likely be challenging due to tariffs, export controls, and other issues. In this context, they view the TikTok negotiations as a possible opportunity for reconciliation.
The Chinese government has a significant stake in a ByteDance affiliate that enables it to have influence over the company’s direction and inner workings. TikTok claims that only its China-based subsidiary, Douyin Information Service Co., is subject to this control, and suggests that it has no bearing on ByteDance operating internationally. However, China’s export regulations dictate that Chinese companies cannot sell software algorithms, including the one integral to TikTok. Consequently, for any potential acquisition involving TikTok’s valuable recommendation engine, the Chinese government’s approval would be necessary, giving them considerable sway over any possible deal.
telligence analysts Mandeep Singh and Damian Reimertz predicted last year. That’s a considerable sum even for the world’s wealthiest individual. It’s unclear how Musk would execute such a deal, whether it would necessitate the sale of other assets, or if the US government would give its approval. He spent $44 billion to purchase Twitter in 2022 and is still making substantial loan repayments.
Musk is viewed as a highly successful entrepreneur by many ByteDance employees in China, according to someone with knowledge of the situation. He is seen as especially successful in dealing with China’s government through his business at Tesla Inc., this person pointed out.
ByteDance’s leaders continue to stress that their main goal is to combat US laws that would force the Chinese-based company to sell or close its US operations due to national security concerns. TikTok’s lawyers have also argued that the legislation infringes on free speech protections provided by the First Amendment of the US Constitution.
A majority of the Supreme Court justices think that security worries should take precedence over freedom of speech, although they have not yet made an official decision. President-elect Trump, who will assume office on January 20, has tried to postpone the TikTok ban, which is set to go into effect on January 19, in order to work out negotiations. He has stated that he wants “save” the app and there’s been speculation that he might take last-minute action to avoid the ban.
In reality, creating a separate US business for TikTok would be extremely complicated, affecting investors in both China and the US. Lawyers for TikTok told the Supreme Court that it would be “extraordinarily difficult” to separate the American part of the service.
Discussed with Trump. In the past, Microsoft Corporation had considered purchasing the business, and Oracle Corporation has a long-standing technological partnership with the company.
One possible option would be to transfer its existing US users to a different app, rebranded to avoid the ban, according to one source. It’s unclear how successful such a tactic might be.
A person familiar with the company spoke anonymously, citing the drastic nature of the strategy, saying prior to the Supreme Court hearing that the top executives remain committed to resolving the issue through the legal process and would rather continue fighting in the US than give up control of TikTok US by selling it.
Musk holds significant sway over the US-China relationship, given his status as the world’s wealthiest individual and his companies’ business ties to both nations. Tesla, under Musk’s leadership, established a large manufacturing facility in Shanghai in 2019 and has since expanded it to become the company’s largest production site. By doing so, Tesla increased its market share in China despite stiff local competition, and earned favor with government officials.
While Trump is filling his administration with advisors who are critical of China, such as Secretary of State nominee Marco Rubio, Musk has expressed opposition to certain current China trade policies, including the tariffs on Chinese electric vehicles imposed by the Biden administration.
Assisted by Zheping Huang, Alexandra S. Levine, Kurt Wagner, and Colum Murphy.
A witness said it was allowed to sign a guardian agreement which used TikTok name, not MY2023name, keeping the contract convenient identifying amounts by payments made and services applied. Saying this happened at an inescapable in-person meeting in New York –the state where regulations are more lenient, some functionary witnesses were asked about getting paid storage identifier. Paraphrasing and risking more abstraction nature transparent code using Citibank incorporates funding from involved when citizen regulatory shouldn’t regulate governed –naked regulation shouldn’t lead investment quality from protection adequacy enforcement.
Most Read from
- Designs of Resilience: LA Homes That Withstood the Blazes, Architects Reveal Their Secrets
- Designing and Implementing Safe and Efficient Bike Lanes
- There is no text to paraphrase in this case. Please provide the text, and I will paraphrase it in United States English.
©2025 L.P.
