Will China Sell TikTok’s U.S. Operations to Elon Musk? Understanding the TikTok Situation in the U.S.

Insight Technology

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TikTok is a popular social media platform worldwide, particularly among teenagers and young people who use the app to create and share short videos in various new formats. TikTok has tens of millions of users in the United States and has become a significant space for content creators to generate income, build a follower base, and create cultural influence.

However, TikTok’s popularity in the US has come with controversy, as the US government has national security concerns because the app is owned by ByteDance, which is based in China.

Social Media Posts

Social media users have shared varied opinions about the US government’s TikTok shutdown order. Some users have also claimed that China is considering selling TikTok’s US operations to Elon Musk.

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Additionally, some claim that the US court order will lead to a global TikTok ban.

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Fact Check

History of TikTok and ByteDance

TikTok launched in 2016 by ByteDance, which was founded in 2012 by Zhang Yiming in Beijing, China. TikTok is a development and improvement of the Douyin app that operates exclusively in China, with TikTok being designed to reach users globally. TikTok’s success comes from using AI technology to filter and recommend content tailored to each user. Currently, TikTok has headquarters in the US and Singapore to manage operations in markets outside China.

Why is the US Government Concerned About ByteDance?

The US government is concerned that TikTok could be used as a surveillance tool by the Chinese government, which is possible under China’s national security laws that require Chinese companies to hand over data to the government upon request. Additionally, the vast collection of user data, such as location, usage patterns, and consumer behavior, could risk being used inappropriately

History of TikTok Ban Attempts in the US

The ban efforts started in 2020 when the Trump administration ordered ByteDance to sell TikTok to an American company or face a ban, claiming potential data sharing with the Chinese government. While the Biden administration later revoked this order, data security monitoring continued. As of 2023, the US Supreme Court is reviewing a case regarding the TikTok ban. 

Potential Impacts of the Ban

  • Impact on Users: Users in the US will no longer be able to download or update TikTok if there is a federal-level ban, which could eventually render the app unusable
  • Impact on Businesses: Creators and businesses that rely on TikTok for revenue and marketing will need to find new platforms to conduct their activities
  • Political Dimension: The TikTok ban could increase tensions in US-China relations

TikTok’s Response to Allegations

TikTok confirms that it does not share data with the Chinese government and has taken steps to increase transparency, such as establishing data centers in the US and Europe. Additionally, TikTok CEO Shou Zi Chew testified before Congress to explain data security measures and denied allegations that TikTok poses a national security threat.

Will TikTok Sell Its U.S. Operations to Elon Musk?

On January 14, 2025, TikTok denied rumors that China was considering selling TikTok’s U.S. operations to Elon Musk’s platform X, stating that it was “purely fictional”.

According to a Bloomberg News report citing anonymous sources, China was considering selling TikTok’s U.S. operations to X to avoid a forced sale or shutdown mandated by U.S. law taking effect on January 19, 2025.

This law requires ByteDance, TikTok’s Chinese parent company, to sell TikTok to a U.S. company or face forced shutdown due to security concerns. The U.S. government believes TikTok could give the Chinese government access to user data and spread propaganda, allegations that both the Chinese government and ByteDance deny.

TikTok has appealed this law to the U.S. Supreme Court, which began hearing the case on January 10, 2025. The majority of justices appear skeptical of TikTok’s argument that a forced sale would violate constitutional free speech rights.

Elon Musk, owner of Tesla—which has a major factory in China—and a close ally of President-elect Donald Trump who takes office on January 20, 2025, is reportedly being considered as a potential key player in these negotiations.

However, TikTok declined to comment further, simply stating, “We cannot be expected to comment on pure fiction.” (Source: The Strait Times)

Is TikTok Getting Banned Globally?

Currently, there are no plans for a global TikTok ban on January 19, 2025. The legal challenges are specific to the United States, where ByteDance (TikTok’s parent company) must either sell its U.S. operations by that date or face restrictions. While the Supreme Court reviews this law, any potential ban would only affect the United States. TikTok continues to operate as usual in other countries, though some nations have their own regulations for the app.

A U.S. ban would significantly impact users and businesses. Americans would lose access to TikTok downloads and updates through Apple and Google app stores. The existing app version would likely become unstable and develop security vulnerabilities over time. Businesses using TikTok for marketing would need to migrate to other social media platforms, potentially disrupting their customer relationships and sales.

TikTok’s Resurrection: Is It Permanent?

After going offline Saturday night, TikTok came back online within 12 hours when Trump announced he would delay the ban through an executive order. TikTok, with its 170 million US users, expressed gratitude to Trump and committed to finding a lasting solution. Trump suggested splitting ownership equally between ByteDance and an American company, though this is just a temporary fix since the law still requires Chinese owners to sell. Several potential buyers have emerged, including businessmen Frank McCourt and Kevin O’Leary, plus AI company PerplexityAI, but ByteDance isn’t eager to sell. During the brief shutdown, many content creators shared emotional reactions about losing access to the platform.
Looking ahead, TikTok’s long-term fate depends on addressing the national security issues that led to the bipartisan law. Without either new legislation or a complete sale to American owners, the app risks future shutdowns. The situation has created division among lawmakers – some insist on completely cutting ties with ByteDance, while others question whether delaying the ban is legal. (Source: CNN)

Conclusion

While the dispute between TikTok and the U.S. government continues, TikTok has firmly denied reports suggesting China plans to sell its operations to Elon Musk. And the claim that TikTok will be banned globally from this case is also not true, the ban and legal issues only affect TikTok in the United States, not worldwide. 

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Title:Will China Sell TikTok’s U.S. Operations to Elon Musk? Understanding the TikTok Situation in the U.S.

Fact Check By: Cielito Wang 

Result: Insight


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