Chinese officials are exploring contingency plans for TikTok as the short-form video platform faces a potential U.S. ban set for Jan. 19. Among the possibilities reportedly under consideration is selling TikTok’s U.S. operations to Elon Musk, owner of social media platform X, according to Bloomberg sources.
While Beijing strongly prefers that ByteDance, TikTok's parent company, retain control of its U.S. operations, unnamed sources indicate that discussions about Musk's potential involvement are on the table as a fallback option. However, it's unclear whether Musk, X, TikTok, or ByteDance are formally part of these deliberations.
Despite Musk’s ownership of a rival social media platform, he has been vocal in opposing a TikTok ban.
“In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” Musk tweeted in April. “Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”
Musk’s ties to China extend through his leadership of Tesla, which maintains significant business operations there. His favorable dealings with Chinese officials may play a role in Beijing's consideration of his involvement.
Political and Legal Pressure
The looming ban follows renewed concerns from U.S. officials about data security and alleged ties between ByteDance and the Chinese government. ByteDance has repeatedly denied any influence from Beijing, asserting its operational independence. Nevertheless, Chinese officials reportedly view the TikTok negotiations as a chance to engage diplomatically with the incoming Trump administration, which has indicated interest in revisiting trade policies, including tariffs and export controls.
In December, President-elect Donald Trump hinted at a softer stance toward TikTok, despite his previous administration’s push to ban the app. “I have a warm spot in my heart for TikTok because I won youth by 34 points,” Trump said. “And there are those that say TikTok has something to do with it.”
However, a Tufts University analysis of Associated Press data shows Vice President Kamala Harris narrowly won the under-30 vote overall, though Trump made significant gains with younger men compared to the 2020 election.
Legal and Market Developments
ByteDance has sought resolution in U.S. courts, culminating last week in Supreme Court hearings to determine the ban's legality. Amid these legal proceedings, other bidders are showing interest in acquiring TikTok’s U.S. operations.
Former Los Angeles Dodgers owner Frank McCourt and investor Kevin O’Leary recently formalized a bid through the group “The People’s Bid for TikTok.” McCourt’s proposal reportedly excludes TikTok’s algorithm, potentially lowering the deal’s valuation but appealing to U.S. regulators concerned about data privacy.
As the deadline looms, China's government may intensify its involvement in negotiations to protect its tech interests while seeking diplomatic leverage. Whether TikTok will remain under ByteDance’s control or be sold to Musk, McCourt, or another bidder remains uncertain.
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