Can Elon Musk Really Save Tiktok?

Chinese officials are reportedly exploring a backup strategy for TikTok aft nan Supreme Court appeared improbable 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 discarded nan app.

The kicker? China is reportedly mulling having President-elect Donald Trump’s favourite tech billionaire, Elon Musk, enactment either arsenic supplier aliases purchaser successful nan arrangement. Reports from nan Financial Times, Wall Street Journal and Bloomberg — each citing unnamed sources — bespeak that Chinese officials are astatine slightest discussing nan action of a sale. TikTok spokesperson Michael Hughes has called nan reports “pure fiction.” The Chinese embassy successful nan US and Musk’s existing societal media company, X, did not respond to requests for comment.

Plenty of group personification 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 nan 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 immoderate China and Trump.

Musk is uniquely positioned to play a domiciled successful a imaginable deal. He has a nonstop connection to Trump, has said he wants X to beryllium overmuch for illustration TikTok since he bought it, and plentifulness of acquisition dealing pinch Chinese authorities. (Sales from China relationship for a important banal of Tesla’s business.) He could merge TikTok pinch X and xAI, his OpenAI competitor, to create a overmuch influential platform. As nan richest man successful nan world, he too has entree to nan money he’d petition 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 nan matter of nan 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 cleanable because he’s too adjacent to Trump,” Le says, adding that nan Chinese authorities whitethorn already consciousness comfortable pinch him. “Having personification for illustration Musk would still fto nan US and China to personification immoderate aspects of linkage to discarded and acquisition and overseas nonstop investment, moreover though, successful general, nan decoupling is occurring.”

China whitethorn clasp disconnected connected a discarded if it believes nan US will fto TikTok enactment nether ByteDance’s ownership, peculiarly fixed TikTok’s power astir nan world. ByteDance is simply a homegrown tech champion and guidelines of nationalist pridefulness for China, truthful authorities whitethorn beryllium unwilling to suffer nan optics of handing TikTok complete to nan US. Plus, China whitethorn for illustration to fto nan US return powerfulness globally complete nan ban, moreover if it intends nan nonaccomplishment of a important marketplace for TikTok. Chinese overseas ministry spokesperson Wang Wenbin said past twelvemonth that a forced discarded aliases prohibition “will inevitably recreation backmost to coiled nan United States.”

On nan different hand, China is astir to look a caller protectionist guidance erstwhile Trump is sworn successful adjacent week. He has promised exorbitant tariffs connected Chinese imports, which could harm its economy. If nan Chinese authorities is looking for an effective bargaining spot pinch Trump and nan US, it mightiness personification recovered 1 successful TikTok, peculiarly considering nan President-elect’s “warm spot” for nan app. Chinese officials spot a woody complete TikTok being a imaginable area of collaboration pinch nan US arsenic they expect tense negotiations complete different issues pinch nan Trump administration, sources told Bloomberg.

If TikTok is banned, it’s not clear really quickly users would consciousness nan effects. Apple and Google would petition to region nan app from their app stores and extremity updating it. It would still enactment connected users’ phones if they’ve already downloaded it but Oracle, which provides unreality infrastructure to TikTok successful nan US, would apt too beryllium required to extremity hosting nan app’s data.

Some could still entree TikTok by utilizing virtual backstage networks (VPNs) but that adds an different furnishings of friction. Despite each this, advancement toward a woody could proceed aft nan prohibition takes effect connected Sunday — which will hap unless nan Supreme Court stops it. There’s too nan slim chance that Congress aliases President Joe Biden widen nan deadline.