China might consider selling the US operations of TikTok to American business tycoon Elon Musk, who’s also the owner of another social platform, X (formerly Twitter), since 2022.
This is a decision Chinese officials might have to settle with if ByteDance, the parent company of TikTok, fails to avert a controversial ban the short-video social platform is about to face if it doesn’t divest its US operations by January 19, 2025.
ByteDance forced to sell TikTok’s US operations, or face a ban
Obviously, however, the Chinese leaders would prefer for ByteDance, a China-based private company, to remain as the owner of TikTok. However, things are not all sunshine and rainbows for ByteDance, as the company is challenging the upcoming ban by filing an appeal with the US Supreme Court.
There are also internal sources claiming that the Supreme Court justices are most likely standing on the US government’s side and will uphold the law, requiring ByteDance to divest TikTok’s operations in the US.
Elon Musk could become TikTok’s new owner in the US, thanks to Donald Trump?
In preparation for the worst-case scenario, Chinese officials are coming up with contingency plans, including working with the US government and the possibility of involving Elon Musk in the future of TikTok’s ownership in the US.
Just in case you didn’t follow the 2024 US presidential election, Elon Musk played a major role in Donald Trump’s election campaign, having poured in over USD250 million (~RM1.1 billion) to support Trump’s re-election.
The tycoon, who’s also famously known as the founder and CEO of Tesla, will be assigned a prominent role in Trump’s presidency, by co-leading a new “Department of Government Efficiency” with former Republican presidential candidate Vivek Ramaswamy, which is interestingly claimed to be a non-government organisation.
If Elon Musk becomes the captain of TikTok’s ship in the US, he will benefit from the platform which has a US user base of over 170 million, by giving X a major boost in attracting advertisers.
Additionally, this will also favour his artificial intelligence (AI) research and development company, xAI, thanks to the substantial data volumes generated from the Chinese social media platform.
The Chinese government is involved in TikTok, but we’re not affected?
Currently, the Chinese government holds what is known as a “golden share” in a ByteDance affiliate, which gives it authority over the firm’s strategy and operations. Despite that, TikTok insists that this only affects the company’s subsidiary in China – Douyin Information Service, and is immaterial to ByteDance’s operations outside of China.
All in all, it needs to be clarified that Chinese officials have yet to conclude how it will proceed with the court case, including TikTok’s future US ownership moving forward. It’s also not known if Musk, ByteDance, and TikTok have engaged in any discussions regarding any possible deal.
Elon Musk actually not in favour of banning TikTok?
As much as Elon Musk is potentially involved in the TikTok ban, he once voiced his opinion towards the ban back in April 2024, saying that “TikTok should not be banned in the USA, even though such a ban may benefit the X platform.” He also added that “Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”
Equally, TikTok’s lawyers see the ban as a violation of free speech. However, the US government sees TikTok as a national security threat. In fact, the majority of the Supreme Court justices consider security concerns a higher priority than free speech. Donald Trump who is set to take office as the US President on the 20th of January 2025, is considering delaying the ban to find a way forward with Beijing.
Chinese officials are aware that the TikTok ban is just one of the puzzle pieces of challenges it will face with the Trump administration. The country is anticipating to face tough negotiations with the Trump administration over tariffs, export controls, and other issues. Therefore, it sees the TikTok negotiations as a potential way of reconciling.
[ SOURCE ]
