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According to two people familiar with the talks, Beijing officials are the broker of a potential sale of Tiktok’s US business just days before China-owned social media app faces a ban from Washington. We’re talking about using it.
The bill was passed in Congress in April. This requires Tiktok’s Beijing-based parent ordinance to sell shares in the app or face a ban due to security concerns.
According to people familiar with the debate, Chinese officials hope that masks will help mediate transactions that could prevent the platform from being shut down.
This includes Musk, the billionaire owner of social media app X, and Donald Trump’s close confidants, helping to persuade the US presidential election to avoid enforcement of the ban.
At this stage, the discussion is “very preliminary, mostly brainstorming,” according to one person.
People added that bytedance and Tiktok’s teams are primarily focused on winning legal battles with the US government to stop the bill from coming into effect.
Musk did not immediately respond to requests for comment from the Financial Times.
Bloomberg reported Tuesday that Chinese officials are weighing Tiktok’s sale to Musk. The company said in response to the report that it “cannot expect to comment on pure fiction.”
The sale or van law relating to Tiktok will come into effect the day before Trump is inaugurated Monday. The U.S. Supreme Court has shown that there is a high chance of law being put into place.
Trump has pledged to “save the app” and called for delays in implementing the law, but Musk opposed the ban on Tiktok’s US operations.
Musk enjoys good relationships with Chinese officials and places him in an influential position in broker transactions such as the sale of Tiktok. Tesla’s chief has been doing business in China in recent years and has been interacting frequently with government officials.
Last April, the billionaire flew to Beijing to meet President Xi Jinping’s second Li Qiang. Experts say they showed Beijing’s approval of masks and his technical plans.
Musk also has a strong economic interest in maintaining friendly relations with China as Tesla’s share of electric vehicle sales has dropped significantly over the past year.
Earlier this month, the automaker debuted a major update of the Model Y in China.
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Tiktok has exploded in popularity among teenagers in recent years, and now has 170 million US users. However, in Washington, it is being scrutinized in Washington due to concerns that the app could be exercised by Beijing for spying purposes or spreading propaganda.
During a hearing in the U.S. Supreme Court last week, Tiktok denied the charges and alleged that the law violated First Amendment Protection for Free Speech.
When Trump returned to the White House later this month, he begged the court to delay legislative deadlines to allow “an opportunity to pursue political resolution to the issue of the case.”
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Musk posted to X in April: “In my opinion, Tiktok should not be banned in the US, despite the possibility that such a ban could benefit the X platform,” he said. wrote about X. . That’s not short for America. ”
Tiktok claims that before the deadline the spinoff will become technically “unfeasible.” According to China’s export laws, Beijing, who has a say in any sale, says it opposed the sale and branded the law “the blatant act of commercial robbery.”
Noel Francisco of Jones Day, a lawyer for Tiktok, said on Friday that the sale will be “always very difficult under the framework.” If the company loses this incident, he asked what would happen on January 19th, he replied: “I understand that, we’re going to get dark.”
China and China’s Ministry of Commerce Cyberspace Management did not respond to calls made outside of business hours.
Additional reports from Hannah Murphy in San Francisco and Stefania Palma in Washington, DC
