TikTok is facing closure in the US in a few days if the app is not sold. The financial agency Bloomberg reports that Beijing is currently considering an unexpected solution. According to a media report, the Chinese government is considering selling TikTok’s threatened US business to tech billionaire Elon Musk . The option that was discussed in Beijing was that Musk’s online platform X could take control of TikTok US and operate the services together, wrote the financial service Bloomberg, citing informed sources.
The social media platform clearly contradicted the reports. Among other things, a TikTok spokesperson said BBC reporters: “We shouldn’t be supposed to make statements on absolute fiction.”
US law requires sale
TikTok is an application for videos owned by the Bytedance group, that is based in China. The United States has issued warnings that the Chinese government may obtain user information and exploit the site to launch influencing activities.
Therefore, Bytedance must separate from TikTok under US law. The 270-day deadline for doing so expires on January 19. Without a sale, the company will be shut down in the US on that day. Tiktok denies the allegations and has so far refused to separate from Bytedance.
Difficult situation before the Supreme Court
Instead, TikTok went to the US Supreme Court in the hope of at least getting a stay. However, at a hearing, the judges were unconvinced by the argument that the law violated the freedom of speech enshrined in the US Constitution.
In addition, Trump, who will take office on January 20, urged the judges to grant him additional time to come with an agreement on TikTok. In the United States, the application itself has around 170 million users.
Tiktok always emphasizes that Bytedance is majority owned by international investors – but since the headquarters are in Beijing. The parent company has to comply with the authorities’ requirements. In addition, the government can have a say in a sale: The algorithm that selects the videos for users was developed in China. And Beijing has banned the distribution of such software without special permission.
China is important for Tesla
Musk, who also runs the electric car manufacturer Tesla , donated more than $250 million to Trump’s election campaign and is currently one of his closest confidants. He is considered a businessman with very good relations with the Chinese leadership, who have repeatedly given him high-ranking receptions during his visits to the People’s Republic.
Among the Tesla’s most significant sales markets is china. The company was also the first foreign car manufacturer to be allowed to build its own factory in Shanghai . Others have always had to set up joint ventures with Chinese partners to do this. Some observers see the influence that Musk could exert on Trump in the White House as an advantage for China.https://youtu.be/OJij_ajYpzw?si=e69cDMeiXqtWFc-c