TikTok has refuted claims that China is considering facilitating the sale of the app’s US operations to Elon Musk in order to keep TikTok running in America, amidst concerns of a potential US government ban. The denial comes after Bloomberg reported on Monday that “Chinese officials are exploring the option of Elon Musk acquiring TikTok’s US business” if an American law requiring parent company ByteDance to sell its stake in the app or face a ban takes effect. The report cited anonymous sources.
In response to the report, a Variety article quoted TikTok representative as saying, “We can’t be expected to comment on pure fiction.” Musk has not made any comments on the matter.
The Tesla and SpaceX CEO, who purchased Twitter in 2022 and rebranded it as X, was reportedly part of a scenario being discussed by Chinese officials, where X would take control of TikTok’s US operations and manage the businesses jointly. However, Bloomberg noted that it remains unclear whether Musk, TikTok, or ByteDance have had any discussions regarding the terms of such a potential deal.
Why is US banning TikTok?
TikTok is facing the threat of a ban in the US under a law scheduled to take effect on January 19 unless the Supreme Court intervenes. On January 10, the Supreme Court heard TikTok’s emergency appeal to block the law, with the company arguing that it infringes on the First Amendment rights of its 170 million US users. However, the justices appeared to favor the government’s position, which frames TikTok as a national security risk due to its connection with the Chinese Communist Party.
ByteDance, based in Beijing, has not suggested it is considering selling its approximate 40% stake in TikTok to a group that would gain US approval. Chinese officials have previously stated that any attempt by ByteDance to sell its TikTok stake would likely be blocked, as it would be considered a technology export.
The law, passed with bipartisan support and signed into law by President Biden, prohibits Apple and Google’s app stores from hosting TikTok unless ByteDance sells its ownership to a company based in a nation not considered a “foreign adversary” of the US. Concerns over TikTok’s Chinese ownership have sparked fears that the Chinese government could use the app for espionage or propaganda purposes.
President-elect Donald Trump has requested that the Supreme Court delay the law’s implementation to allow for a “negotiated resolution” that could avoid a nationwide shutdown of TikTok, while addressing national security concerns. Trump’s previous attempt to force a sale of TikTok to a US company during his first term was unsuccessful.