According to media reports, Chinese authorities are considering the possibility of the social network TikTok's US operations being acquired by tech billionaire Elon Musk. Beijing is discussing the option for Musk's online platform X to take control of the American TikTok and manage the services together, the German ARD reports, citing Bloomberg.
The Wall Street Journal claims that it is ready for the deal to be concluded immediately after Donald Trump takes office on January 20.
A TikTok spokesperson told the British BBC that the company cannot be expected to comment on "pure fiction."
The video app has over 170 million users in the US. That is why the topic of discussion there is the extent to which Beijing gains access to the data of American users and the ability to organize influence campaigns on the platform.
The ultimatum expires
TikTok belongs to the China-based group ByteDance. Last year, the US passed a law requiring the platform to sever ties with its parent company under threat of being banned from operating in the US on January 19 of this year. If a sale is not made, there is a risk that the company will cease operations on that day.
This prompted TikTok to appeal to the US Supreme Court with a request for at least a postponement. At the hearing, however, the judges were not convinced by the argument that the law violates the freedom of speech enshrined in the US Constitution. Trump also called on the judges to give him more time to reach an agreement regarding the platform.
TikTok points out that ByteDance is majority-owned by international investors. However, given that its headquarters are in Beijing, the parent company must also comply with the requirements of the authorities. The government also has a say in the sale.
Musk is heavily involved in China
US-China relations are strained, including over espionage allegations and punitive tariffs. TikTok could now become a bargaining chip.
Elon Musk, who donated more than $250 million to Trump's campaign and is now one of his closest confidants, has very good relations with Chinese authorities.
China is one of Tesla's most important sales markets. The company was the first foreign automaker to be allowed to build a factory in Shanghai, which is wholly owned by Musk's company. Others have always had to form joint ventures with Chinese partners. Some observers believe that the influence Musk could have on Trump in the White House in the future is an advantage for China.