China considered Elon Musk to buy TikTok

In the United States, TikTok currently faces significant scrutiny and potential bans, leading Chinese officials to evaluate several contingencies regarding the platform's future. Reports suggest that Chinese officials are contemplating the sale of TikTok's U.S. operations to Elon Musk as a strategic move, particularly if the company cannot successfully fend off the impending ban. The potential sale aligns with a broader plan to improve relations with the incoming administration of President-elect Donald Trump, of whom Musk is considered a close ally. Despite this consideration, it has been indicated that Chinese officials would prefer ByteDance, TikTok's parent company, to retain ownership instead. TikTok has been embroiled in controversy regarding data security and its alleged connections to China, leading federal officials to label it a "national-security threat of immense depth and scale." ByteDance and TikTok personnel have countered this characterization, arguing that these concerns over user data are unfounded. Additionally, TikTok's legal team is actively challenging the proposed ban in the U.S. Supreme Court, which is still deliberating on the matter. However, during recent oral arguments, justices appeared skeptical about TikTok's claim that its operations are protected under the First Amendment. Amid increased tensions and trade worries tied to Trump’s presidency, Chinese officials are anxious about how tariffs and relations might shift and how these may impact TikTok. Discussions on the potential sale to Musk are framed within this context of ensuring TikTok's survival while mitigating the risks associated with its current ownership structure. Some observers believe that if a sale could occur, it may allow the app to operate without the looming threat of a ban, which many speculate would have dire consequences for the vast creator economy reliant on the platform. Furthermore, it has been noted that the valuation of TikTok's U.S. operations hovers around $40 to $50 billion, making it an opportunity for Musk, who is already well-versed in navigating business interests in China. While some assert that such a move may be beneficial for Musk—by eliminating a competitor and potentially using TikTok’s data to enhance his AI venture, xAI—there are new complications. One of these includes the necessity for direct approval from Beijing for any sale, as Chinese law restricts the sale of key software algorithms, placing additional hurdles in front of any potential transactions.