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While Chinese video platform TikTok's service in the U.S. is expected to be banned soon, Chinese authorities are reportedly considering selling TikTok's U.S. business to Tesla CEO Elon Musk as an alternative.
Citing multiple anonymous sources, Bloomberg reported on the 13th local time that Chinese authorities are evaluating such a plan as a potential option in case the so-called "TikTok Ban Act" is implemented in the United States.
Chinese authorities strongly want TikTok to remain owned by parent company ByteDance, but it's unlikely.
As a result, sources explain that high-ranking Chinese officials have begun reviewing the TikTok issue in a comprehensive discussion on how to cooperate with the next U.S. administration of Donald Trump.
Musk, who is considered the "top contributor" to Trump's victory in the presidential election, will lead the newly established Ministry of Government Efficiency (DOGE) to restructure the U.S. government.
With hardliners in China in the second Trump administration, Musk, who has a Tesla production plant in China, is said to be in a position to influence relations between the two countries.
As such, China, which is about to negotiate with the U.S. in areas such as tariffs, is likely to use the sale of TikTok as a "place of reconciliation."
One scenario is that Musk-owned social media X controls TikTok and the two sides co-manage it.
For Musk, more than 170 million TikTok users in the U.S. can be used to attract X's ads, while his own artificial intelligence (AI) company xAI can also use the vast amount of data accumulated on TikTok.
However, the sources said the discussions were in the early stages and that no agreement had been reached between the officials.
It is also unclear how much ByteDance knows about the discussion and whether related stories have been exchanged between Musk or ByteDance and TikTok.
Sources explained that TikTok's fate is not solely in ByteDance's hands, as Chinese authorities hold so-called "golden liquor" in relation to the issue.
Golden stocks are stocks that can influence a company's core decision-making.
TikTok says that golden liquor only affects Douyin, a subsidiary in China, but it cannot be free from the influence of the Chinese authorities.
The Chinese government is preventing its companies from selling software algorithms abroad, and TikTok needs authorities to approve them if it wants to sell its recommendation engines and more.
The TikTok ban, which passed the U.S. Congress in April last year, prohibits TikTok in the U.S. from the 19th unless ByteDance sells TikTok's U.S. business rights to U.S. companies due to national security and other reasons.
TikTok filed a lawsuit in U.S. courts, but both the first and second trials ruled that there was no problem with the law, and TikTok later filed a provisional injunction with the U.S. Supreme Court to stop enforcing the law, but the citation is unlikely.
After taking office on the 20th, Trump also asked the Supreme Court to delay the ban, saying he would resolve the TikTok issue.
TikTok's U.S. division is estimated to be worth $40 billion to $50 billion (about 58 trillion to 73 trillion won), Bloomberg added, although Musk is the world's richest man, how he can raise the funds is also a question.
Musk spent $44 billion (W64 trillion) to acquire Twitter in 2022 and still has significant loans left.
Reporter: Kwon Young-hee
AI Anchor: Y-GO
Edit Caption: Jung Jin
※ 'Your report becomes news'
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Citing multiple anonymous sources, Bloomberg reported on the 13th local time that Chinese authorities are evaluating such a plan as a potential option in case the so-called "TikTok Ban Act" is implemented in the United States.
Chinese authorities strongly want TikTok to remain owned by parent company ByteDance, but it's unlikely.
As a result, sources explain that high-ranking Chinese officials have begun reviewing the TikTok issue in a comprehensive discussion on how to cooperate with the next U.S. administration of Donald Trump.
Musk, who is considered the "top contributor" to Trump's victory in the presidential election, will lead the newly established Ministry of Government Efficiency (DOGE) to restructure the U.S. government.
With hardliners in China in the second Trump administration, Musk, who has a Tesla production plant in China, is said to be in a position to influence relations between the two countries.
As such, China, which is about to negotiate with the U.S. in areas such as tariffs, is likely to use the sale of TikTok as a "place of reconciliation."
One scenario is that Musk-owned social media X controls TikTok and the two sides co-manage it.
For Musk, more than 170 million TikTok users in the U.S. can be used to attract X's ads, while his own artificial intelligence (AI) company xAI can also use the vast amount of data accumulated on TikTok.
However, the sources said the discussions were in the early stages and that no agreement had been reached between the officials.
It is also unclear how much ByteDance knows about the discussion and whether related stories have been exchanged between Musk or ByteDance and TikTok.
Sources explained that TikTok's fate is not solely in ByteDance's hands, as Chinese authorities hold so-called "golden liquor" in relation to the issue.
Golden stocks are stocks that can influence a company's core decision-making.
TikTok says that golden liquor only affects Douyin, a subsidiary in China, but it cannot be free from the influence of the Chinese authorities.
The Chinese government is preventing its companies from selling software algorithms abroad, and TikTok needs authorities to approve them if it wants to sell its recommendation engines and more.
The TikTok ban, which passed the U.S. Congress in April last year, prohibits TikTok in the U.S. from the 19th unless ByteDance sells TikTok's U.S. business rights to U.S. companies due to national security and other reasons.
TikTok filed a lawsuit in U.S. courts, but both the first and second trials ruled that there was no problem with the law, and TikTok later filed a provisional injunction with the U.S. Supreme Court to stop enforcing the law, but the citation is unlikely.
After taking office on the 20th, Trump also asked the Supreme Court to delay the ban, saying he would resolve the TikTok issue.
TikTok's U.S. division is estimated to be worth $40 billion to $50 billion (about 58 trillion to 73 trillion won), Bloomberg added, although Musk is the world's richest man, how he can raise the funds is also a question.
Musk spent $44 billion (W64 trillion) to acquire Twitter in 2022 and still has significant loans left.
Reporter: Kwon Young-hee
AI Anchor: Y-GO
Edit Caption: Jung Jin
※ 'Your report becomes news'
[Kakao Talk] YTN Search and Add Channel
[Phone] 02-398-8585
[Mail] social@ytn.co.kr
[Copyright holder (c) YTN Unauthorized reproduction, redistribution and use of AI data prohibited]
