China considers selling TikTok to billionaire Elon Musk

According to the report citing inside sources, Beijing officials have stressed that TikTok needs to remain under the tight control of parent company ByteDance.

This reflects the Chinese government's efforts to protect its strategic and national interests, while ensuring that TikTok remains compliant with its data management and information security policies.

The report said TikTok's US operations could be transferred in two ways: one through a competitive bidding process between interested parties, the other based on a deal negotiated and approved by the government.

This suggests that control of TikTok's future in the US market is gradually moving beyond ByteDance's influence, reflecting increasing regulatory pressure and escalating political tensions between the US and China.

The Chinese government now owns a special class of shares, often referred to as “golden shares,” in TikTok’s parent company, ByteDance. These shares not only confer economic benefits but also come with special control, including the ability to participate in the company’s strategic and operational decisions.

Some members of Congress are concerned that this effectively gives the Chinese government indirect but significant power over TikTok, especially regarding data and content policies, raising national security concerns.

Under a proposed scenario, billionaire Elon Musk's social media platform X could take over control of TikTok in the US and jointly run the platform's business operations.

However, Bloomberg News reported that relevant officials have yet to reach a consensus on how to implement this plan, leaving TikTok's future in the US market unclear.

“We cannot comment on information that is completely unfounded,” a TikTok spokesperson said when asked about the report.

It remains unclear to what extent ByteDance was aware of these discussions, nor what specific roles Elon Musk and TikTok would play in the potential plans.

There has been no confirmation that ByteDance, TikTok, or Musk are in talks about a possible deal, adding to the uncertainty surrounding TikTok’s future in the US.

TikTok has previously asserted that the Chinese government's ownership of its "golden shares" "does not affect ByteDance's global operations outside of China, including TikTok."

However, Elon Musk, the X platform, along with the Cyberspace Administration and the Ministry of Commerce of China, have yet to officially respond to requests for comment on the matter.

The new rules are aimed at strengthening the position of the US and its allies in advanced technology, while seeking stronger measures to limit China's access to advanced computing resources.

Against that backdrop, last week the US Supreme Court appeared inclined to uphold a law requiring TikTok to be sold or banned in the US by a January 19 deadline, citing serious national security concerns related to China.