China Considers TikTok US Sale to Elon Musk Amid Looming Ban

Chinese officials are reportedly weighing the sale of TikTok’s United States operations to Elon Musk, owner of social media platform X, in a bid to comply with upcoming US legislation that could ban the app nationwide.

Elon Musk Emerges as a Potential Buyer

Amid escalating tensions between TikTok and US lawmakers, Chinese authorities are reportedly evaluating the possibility of selling TikTok's US operations to billionaire Elon Musk.

Bloomberg reported on January 14 that one scenario under consideration involves Musk’s social media platform, X, acquiring TikTok US and managing its operations alongside X.

The discussions, described as preliminary by sources familiar with the matter, highlight China's desire to maintain control over TikTok while addressing US security concerns.

However, TikTok’s parent company, ByteDance, continues to fight against the potential ban through legal channels, appealing to the US Supreme Court.

ByteDance argued in its emergency appeal that the impending law requiring the company to sell its US operations violates the First Amendment rights of TikTok’s 170 million American users.

Despite these claims, the Supreme Court appeared more receptive to the US government’s stance that TikTok poses national security risks due to its ties to the Chinese Communist Party.

National Security Concerns Drive the Ban

TikTok has been at the center of a national security debate since March 2023, when its CEO, Shou Chew, faced questioning from US lawmakers over allegations of data collection and surveillance.

These concerns led to the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act, which mandates ByteDance to divest its US operations by January 19 or face an effective ban.

Chinese officials have expressed reluctance to approve a sale, viewing such a move as a technology export that could compromise the country's strategic interests. A TikTok representative dismissed Bloomberg’s report as “pure fiction,” while Musk has yet to comment on the matter.

The law prohibits US-based app stores and web hosting services from supporting TikTok unless ByteDance sells its stake to a party located in a non-adversarial country.

President-elect Donald Trump has requested the Supreme Court to delay the law’s implementation to allow for a negotiated resolution.

Potential Sale Valuation and Future Impact

Bloomberg Intelligence analysts estimate TikTok’s US operations could be valued between $40 billion and $50 billion. If Musk were to acquire the platform, it could fundamentally reshape the social media ecosystem by combining X's microblogging capabilities with TikTok’s video-sharing dominance.

Musk has previously opposed banning TikTok in the US, arguing that such action would undermine freedom of speech. In April 2023, he stated, “TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” reinforcing his stance on protecting expression and creativity.

The potential acquisition, however, raises questions about regulatory challenges and the role of major tech figures in global social media governance.

The deliberations within the Chinese government also highlight the geopolitical complexities of balancing national security concerns with economic interests.

As the January 19 deadline looms, TikTok’s future in the US remains uncertain, with the proposed sale to Musk representing a high-stakes solution to a contentious issue.

Whether this scenario materializes will depend on decisions made in Washington, Beijing, and the boardrooms  of TikTok and X.