BEIJING: In a high-stakes debate with global repercussions, Chinese officials are exploring the possibility of Elon Musk acquiring TikTok’s US operations. This comes as the short-video app faces a potential ban in the United States, with the Supreme Court signaling it may uphold the legislation mandating TikTok’s sale or shutdown due to national security concerns.
Beijing reportedly prefers TikTok to remain under its parent company, ByteDance Ltd., which is appealing the ban in court. However, if the legal battle fails, a sale to Musk’s X platform—formerly Twitter—has emerged as a contingency plan, according to sources familiar with the discussions. With over 170 million US users, TikTok’s data and advertising potential could significantly bolster Musk’s ventures, including his AI company, xAI.
Chinese officials view a deal involving Musk—who has a history of successful dealings with China through Tesla—as a potential diplomatic lever with the US, especially under the incoming administration of Donald Trump. Musk, a prominent Trump ally, reportedly spent $250 million supporting his re-election and has been tapped for a key role in government efficiency initiatives.
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Despite these discussions, no consensus has been reached in Beijing. ByteDance has denied awareness of any such plans, and neither TikTok nor Musk’s representatives have confirmed involvement in negotiations.
TikTok’s legal team argues the ban infringes on First Amendment rights, but the Supreme Court justices have hinted at prioritizing national security over free speech. The ban, set to take effect on January 19, has prompted Chinese officials to weigh their options, which could include a Musk-led acquisition or spinning off TikTok’s US operations under a different brand.
Selling TikTok’s US division would be a complex process, estimated to be worth $40–50 billion. It remains unclear how Musk could fund such a deal or whether it would gain approval from both the US and Chinese governments. Additionally, Beijing’s export restrictions on algorithms—central to TikTok’s functionality—give it significant leverage in any potential sale.
While Musk has expressed his support for keeping TikTok accessible in the US, the clock is ticking for ByteDance as it faces a critical decision that could reshape the tech landscape and US-China relations.
