Thought Leadership
According to a media report, the Chinese government is considering selling Tiktok ‘s US business to tech billionaire Elon Musk.
The option that Musk’s online platform X could take control of Tiktok US and operate the services together was discussed in Beijing, the financial service Bloomberg wrote, citing informed persons.
The video app Tiktok is owned by the Bytedance Group, which has its headquarters in China. In the US, there are warnings that the Chinese government could gain access to US users’ data and organize influence campaigns on the platform.
Bytedance must therefore divest itself of Tiktok in accordance with US law. The 270-day deadline set for this expires on January 19. Without a sale, the company is threatened with closure in the USA on that day. Tiktok rejects the accusations and has so far refused to separate from Bytedance.
Difficult stand before the Supreme Court
Instead, Tiktok appealed to the US Supreme Court in the hope of at least obtaining a stay. At a hearing, however, the judges were unconvinced by the argument that the law violated the freedom of speech enshrined in the US constitution.
Donald Trump, who will be sworn in as president on January 20, also called on the judges to give him more time to reach a deal on Tiktok. The app has more than 170 million users in the USA.
Although Tiktok always emphasizes that Bytedance is majority-owned by international investors, the parent company’s headquarters in Beijing means that it also has to comply with the requirements of the authorities. The government also has a say in the sale: This is because the algorithm that selects videos for users was developed in China. And Beijing has banned the transfer 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 dollars to Trump’s election campaign and is currently one of his closest confidants. He is regarded as a businessman with very good relations with the Chinese leadership, from whom he has repeatedly received high-ranking receptions during his visits to the People’s Republic.
China is one of Tesla ‘s most important sales markets. The company was also the first foreign car manufacturer to be allowed to build a factory in Shanghai that is wholly owned by Tesla. Others have always had to set up joint ventures with Chinese partners. Some observers see the influence that Musk could exert on Trump in the White House in future as an advantage for China.
dpa
