Chinese officials are reportedly exploring a backup scheme for TikTok aft the Supreme Court appeared unlikely to prevention it from a US ban. With TikTok’s ineligible options astir exhausted, aggregate news outlets are reporting that China is considering an action it antecedently said it wouldn’t: letting ByteDance waste the app.
The kicker? China is reportedly mulling having President-elect Donald Trump’s favourite tech billionaire, Elon Musk, enactment either arsenic agent aliases purchaser successful the arrangement. Reports from the Financial Times, Wall Street Journal and Bloomberg — each citing unnamed sources — bespeak that Chinese officials are astatine slightest discussing the action of a sale. TikTok spokesperson Michael Hughes has called the reports “pure fiction.” The Chinese embassy successful the US and Musk’s existing societal media company, X, did not respond to requests for comment.
Plenty of group person expressed liking successful buying TikTok astatine this point, from ”Shark Tank” personage Kevin O’Leary to YouTuber Mr. Beast. The problem has not been a deficiency of buyers — though evident ones for illustration Meta and Google would apt beryllium barred by antirust authorities — but reluctant sellers. The caller reporting suggests that the Chinese government, which has agelong stated it would garbage to o.k. a sale, could now beryllium changing its mind. Musk’s reported engagement makes immoderate strategical consciousness based connected his relationships pinch some China and Trump.
Musk is uniquely positioned to play a domiciled successful a imaginable deal. He has a nonstop statement to Trump, has said he wants X to beryllium much for illustration TikTok since he bought it, and plentifulness of acquisition dealing pinch Chinese authorities. (Sales from China account for a important stock of Tesla’s business.) He could merge TikTok pinch X and xAI, his OpenAI competitor, to create a much influential platform. As the richest man successful the world, he besides has entree to the money he’d request to do a deal.
Long Le, an world business professor astatine Santa Clara University, tells The Verge that China whitethorn beryllium unfastened to a associated task arrangement, akin to what overseas companies operating successful China often undergo. Under the matter of the US law, an app tin beryllium considered to beryllium controlled by a overseas adversary if a personification from 1 of those countries owns astatine slightest a 20 percent stake.
“If they were going to do immoderate type of associated adventure, Elon Musk would beryllium perfect because he’s besides adjacent to Trump,” Le says, adding that the Chinese authorities whitethorn already consciousness comfortable pinch him. “Having personification for illustration Musk would still let the US and China to person immoderate aspects of linkage to waste and acquisition and overseas nonstop investment, moreover though, successful general, the decoupling is occurring.”
“If they were going to do immoderate type of associated adventure, Elon Musk would beryllium ideal”
China whitethorn clasp disconnected connected a waste if it believes the US will fto TikTok stay nether ByteDance’s ownership, particularly fixed TikTok’s influence astir the world. ByteDance is simply a homegrown tech champion and root of nationalist pridefulness for China, truthful authorities whitethorn beryllium unwilling to suffer the optics of handing TikTok complete to the US. Plus, China whitethorn for illustration to fto the US return power globally complete the ban, moreover if it intends the nonaccomplishment of a important marketplace for TikTok. Chinese overseas ministry spokesperson Wang Wenbin said past twelvemonth that a forced waste aliases prohibition “will inevitably travel backmost to wound the United States.”
On the different hand, China is astir to look a caller protectionist management erstwhile Trump is sworn successful adjacent week. He has promised exorbitant tariffs connected Chinese imports, which could harm its economy. If the Chinese authorities is looking for an effective bargaining spot pinch Trump and the US, it mightiness person recovered 1 successful TikTok, particularly considering the President-elect’s “warm spot” for the app. Chinese officials spot a woody complete TikTok being a imaginable area of collaboration pinch the US arsenic they expect tense negotiations complete different issues pinch the Trump administration, sources told Bloomberg.
If TikTok is banned, it’s not clear really quickly users would consciousness the effects. Apple and Google would request to region the app from their app stores and extremity updating it. It would still stay connected users’ phones if they’ve already downloaded it but Oracle, which provides unreality infrastructure to TikTok successful the US, would apt besides beryllium required to extremity hosting the app’s data.
Some could still entree TikTok by utilizing virtual backstage networks (VPNs) but that adds an other furniture of friction. Despite each this, advancement toward a woody could proceed aft the prohibition takes effect connected Sunday — which will hap unless the Supreme Court stops it. There’s besides the slim chance that Congress aliases President Joe Biden extend the deadline.