Chinese officials are reportedly considering a significant shift in their strategy regarding TikTok's operations in the United States. According to a Bloomberg report, if the popular social media app is unable to avoid a potential ban due to ongoing national security concerns, they may entertain the idea of selling TikTok's US division to billionaire Elon Musk. The possible sale is seen as a way to address the growing pressure from US lawmakers, who have raised alarms over the app’s ties to China and its potential to expose US user data to the Chinese government.
The discussions, while still in early stages and inconclusive, suggest that the Chinese government would prefer to keep TikTok under the ownership of its parent company, ByteDance. ByteDance has consistently asserted that its operations outside of China are not subject to undue influence from the Chinese government, especially citing its “golden share” in the company. The golden share, held by Chinese authorities, allows for some oversight, but ByteDance maintains that it has no practical impact on the management of TikTok’s global operations.
Nevertheless, the US government and members of Congress have voiced concerns, arguing that the golden share could give Beijing undue control over TikTok's US operations, especially when it comes to access to sensitive user data. This has led to a heightened scrutiny of the app, with US lawmakers considering legislative measures to address national security concerns, which could include either a forced sale or a potential ban.
The idea of Elon Musk’s social media platform, X, acquiring TikTok’s US operations has emerged as one possible solution, with Musk possibly partnering with ByteDance to manage the app's US presence. However, the report notes that discussions are still in the early stages, and no formal agreements or final decisions have been made.
The controversy surrounding TikTok’s security risks is not new. For years, the company has been under scrutiny, especially following concerns that Chinese authorities could use the app to access and influence sensitive user data from the United States. TikTok has repeatedly denied these allegations, emphasizing that it stores US user data securely within the United States and is committed to ensuring data privacy.
These discussions are unfolding in the context of an ongoing review by the US Supreme Court. The court is considering a law that could lead to TikTok’s forced sale or even a ban by January 19, 2025, due to concerns over national security risks. US lawmakers and government officials argue that TikTok's links to China pose an ongoing threat to user privacy and security.
A TikTok spokesperson quickly dismissed the Bloomberg report, calling it “pure fiction” and refusing to comment further on the matter. There is no indication as to whether ByteDance or Elon Musk's companies have engaged in formal talks about the potential sale or restructuring of TikTok's US operations.
In the backdrop of these developments, China’s Cyberspace Administration and Ministry of Commerce, as well as representatives from Elon Musk’s companies, have remained silent on the Bloomberg report. If these talks continue, they could mark a significant shift in the global tech landscape, particularly in the battle over data privacy and national security concerns, highlighting the tension between international business interests and government oversight.
