China Considers Selling TikTok's US Operations to Trump Supporter Elon Musk to Prevent Potential Ban

Chinese officials are considering a plan where Elon Musk could acquire TikTok's US operations if the app faces a ban. While Beijing prefers ByteDance retain ownership, the company is appealing the ban, though the US Supreme Court seems likely to uphold it. Senior Chinese officials have discussed this option as part of broader talks on engaging with the Trump administration.

The Chinese government is considering a deal where Musk’s X (formerly Twitter) takes over TikTok US, potentially benefiting both companies. Musk, a major Trump supporter, has invested over $250 million in Trump’s re-election and is expected to play a key role in his administration. TikTok’s 170 million US users could boost X’s ad revenue, while Musk’s AI company, xAI, could leverage TikTok’s data.

Chinese officials have not yet reached a firm decision, and their discussions are still in the early stages. It’s unclear how much ByteDance is aware of these talks or if TikTok and Musk are involved. Additionally, there is no information on whether Musk, TikTok, and ByteDance have discussed any potential deal terms.

Musk and his representatives did not respond to a request for comment. Musk posted in April that he thinks TikTok should remain available in the US. “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” he wrote on X. “Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”

ByteDance, TikTok, and Chinese government agencies did not respond to requests for comment. The discussions in Beijing indicate that TikTok’s future may no longer rest solely with ByteDance. Chinese officials view TikTok negotiations as a potential area for reconciliation amid tough talks with the Trump administration over tariffs and export controls.

The Chinese government holds a "golden share" in a ByteDance affiliate, giving it influence over the company’s strategy and operations. While TikTok argues that this control applies only to its China-based subsidiary Douyin Information Service Co., Beijing's export rules prevent Chinese companies from selling software algorithms like TikTok’s recommendation engine. As the government must approve any sale involving this technology, it plays a key role in any potential deal.

TikTok’s US operations could be valued at $40 billion to $50 billion, a significant amount even for the world’s richest person. It’s unclear how Musk could afford the purchase, whether he'd need to sell other assets, or if the US government would approve. He paid $44 billion for Twitter in 2022 and is still repaying loans.

Musk is well-regarded by many ByteDance employees in China for his success as an entrepreneur and experience working with the Chinese government through Tesla.

ByteDance’s leaders are focused on opposing US legislation requiring the sale or shutdown of TikTok’s US operations over national security concerns. TikTok’s lawyers argue the law violates the First Amendment’s free speech protections.

A majority of Supreme Court justices have indicated security concerns may outweigh free speech, though no formal decision has been made. President-elect Trump, taking office Jan. 20, has pushed to delay the Jan. 19 TikTok ban to allow time for negotiations and has hinted at potential last-minute action to save the app.

Spinning off TikTok's US business would be complex, affecting both Chinese and US shareholders. TikTok’s lawyers told the Supreme Court that separating the US operations would be “extraordinarily difficult.”

It’s unclear whether TikTok US would be sold through a competitive process or by government arrangement. Billionaires Frank McCourt and Kevin O’Leary, part of the Project Liberty bid, have discussed the acquisition with Trump. Previously, Microsoft and Oracle explored acquiring the business, with Oracle having a tech partnership with TikTok.

One option for TikTok is to shift its US users to a similar app with different branding to avoid the ban, though its effectiveness is unclear.

A source close to the company, speaking anonymously due to the sensitivity, said executives still prioritize the legal battle and would prefer to continue fighting in the US rather than sell TikTok US and lose control.

As the world’s richest person, Musk influences China-US relations through his businesses, including Tesla, which built its largest production base in Shanghai in 2019. This helped Tesla gain market share in China and build goodwill with officials.

While Trump is appointing China hawks like Marco Rubio as Secretary of State, Musk has criticized recent China trade policies, including Biden’s tariffs on Chinese electric vehicles.