Chinese officials are analyzing a possible strategy that would involve lThe sale of TikTok’s US operations to Elon Muskin case the company fails to avoid an imminent ban on the app, according to sources close to the matter.
Despite this option, Beijing authorities prefer that TikTok remain under the control of its parent company, ByteDance Ltd., which is currently appealing the ban to the U.S. Supreme Court. However, during the hearings on January 10, the judges appeared to lean toward confirming the regulations. Meanwhile, senior Chinese officials have begun discussing contingency plans for TikTok, within the broader context of negotiations with the administration of donald trumpaccording to the same sources.
Elon Musk, a strategic solution?
Among the proposals that have emerged is the possibility that Musk acquires TikTok through his company X (previously known as Twitter), thus consolidating both platforms under the same direction. This merger could offer significant commercial advantages, such as access to the data of TikTok’s more than 170 million American users, strengthening both X’s advertising presence and the artificial intelligence capabilities of the company xAI, also founded by Musk.
However, there is still no consensus in Beijing on how to proceed. It is unclear whether TikTok or ByteDance have participated in these deliberations, or if there have been direct conversations between Musk and the parties involved. For now, Musk himself has publicly expressed his rejection of the TikTok banarguing that such a measure would go against freedom of expression.
Political and economic obstacles
The potential sale of TikTok presents multiple challenges. On the one hand, Chinese law bans sale of key tech algorithmssuch as the one TikTok uses for its recommendation system, giving Beijing considerable leverage in any negotiations. Additionally, ByteDance would have to navigate complex legal and operational issues to separate its US operations from the rest of the company.
On the other hand, a sale of this magnitude—valued between 40,000 and 50,000 million dollarsaccording to Bloomberg Intelligence estimates—would represent a financial challenge even for Muskwho already faces debts related to the purchase of Twitter in 2022 for $44 billion.
A diplomatic move
The possible sale also has political implications. Some Chinese officials see the deal with Musk, a close Trump ally, as an opportunity to ease trade tensions between China and the United States.. However, this relationship could fuel concerns in Washington about a possible conflict of interest, considering that Musk’s companies hold important government contracts.
Meanwhile, ByteDance insists on prioritizing its legal battle against the US legislation, arguing that the ban violates free speech rights guaranteed by the Constitution. However, the Supreme Court could give greater weight to national security concerns raised by the US government.
The situation leaves TikTok on uncertain ground. As legal deadlines shorten, the chances of a solution that avoids a total ban appear to be reduced, putting at stake not only the future of the platform in the United States, but also its role in the complex relationship between China and the United States.
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