Chinese officials reportedly looking for a backup plan for TikTok after Supreme Court appearance It is unlikely to be saved From US sanctions. With TikTok's legal options almost exhausted, multiple news outlets are reporting that China is considering an option it previously said it would not do: allowing ByteDance to sell the app.
The kicker? China is reportedly considering whether tech billionaire Elon Musk, a favorite of President-elect Donald Trump, would act as a broker or buyer in the arrangement. report from financial Times, wall street journal And bloomberg — all citing unnamed sources — indicating that Chinese officials are at least discussing the option of a sale. TikTok spokesperson Michael Hughes has called Report “Pure Imagination.” The Chinese Embassy in the US and Musk's current social media company X did not respond to requests for comment.
At this time many people have expressed interest in buying TikTok “Shark Tank” celebrity Kevin O'Leary To youtuber mr beastThe problem is not a lack of buyers – although obvious buyers like Meta and Google would likely be banned by antitrust authorities – but reluctant sellers. New reporting suggests that the Chinese government, which has long said it would refuse to approve the sale, may now be changing its mind. Musk's alleged involvement makes some strategic sense based on his relations with both China and Trump.
Musk is uniquely positioned to play a role in a potential deal. He has direct contact with Trump, He said he wants X to be like TikTok Since he bought it, and had considerable experience working with Chinese officials. (sales from china He has a significant stake in Tesla's business.) It may merge TikTok with its OpenAI competitors X and XAI to create a more powerful platform. As the richest man in the world, he also has access to the money he will need to make any deal.
Long Le, international business professor at Santa Clara University, explains The Verge China may be open to a joint venture arrangement, as foreign companies operating in China often do. Under the text of US law, an app can be considered controlled by a foreign competitor if a person from one of those countries owns at least a 20 percent stake.
“If they were going to do some kind of joint adventure, Elon Musk would be ideal because he is also close to Trump,” Le says, adding that the Chinese government may already feel comfortable with him. “Having someone like Musk in place will still allow the US and China to have some aspects of engagement with trade and foreign direct investment, even if, in general, decoupling is happening.”
“If they were going to do some kind of joint adventure, Elon Musk would be ideal”
China could block the sale if it is confident the US will allow TikTok to remain under ByteDance's ownership, especially given TikTok Worldwide impactByteDance is a domestic tech champion and a source of national pride for China, so the government may be unwilling to bear the brunt of handing over TikTok to the US. Additionally, China may prefer to let the US take the heat globally over the ban, even if it means the loss of a significant market for TikTok. Chinese Foreign Ministry spokesperson Wang Wenbin said last year Forced sales or sanctions would “inevitably embarrass the United States.”
On the other hand, China will face a new protectionist administration when Trump is sworn in next week. he has Promised to impose excessive tariffs on Chinese importsWhich can harm its economy. If the Chinese government is looking for an effective bargaining chip with Trump and the US, it may find one in TikTok, especially given the President-elect.hot spotFor app. Chinese officials are eyeing a deal on TikTok as a potential area of cooperation with the US as they anticipate tense talks with the Trump administration on other issues, sources said. bloomberg,
If TikTok is banned, it is unclear how quickly users will feel the impact. Apple and Google will have to remove the app from their app stores and stop updating it. If users have already downloaded it it will still be on their phones, but Oracle, which provides cloud infrastructure to TikTok in the US, may also have to stop hosting the app's data.
Some people can still access TikTok using a virtual private network (VPN), but this adds an extra layer of friction. Despite all this, progress towards a deal could continue after the restrictions take effect on Sunday – Which will continue to happen until the Supreme Court stops it. It is also less likely that Congress or President Joe Biden extend the deadline,