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China Weighs Elon Musk, Xi's Approval for TikTok U.S. Sale Amid Ban

Jan 19, 2025, 03:59 AM

Chinese officials are reportedly considering a plan to allow Elon Musk to acquire TikTok's U.S. operations as a potential solution to prevent the app from being banned in the United States. The ban, which took effect following a U.S. Senate-passed law, requires TikTok's parent company ByteDance to sell its U.S. operations or face a complete prohibition. ByteDance, valued at $300 billion and founded in 2012, has challenged the legislation but was unsuccessful in overturning it. The ban has already removed TikTok from app stores in the U.S., cutting off access for approximately 170 million American users, which represent 11% of TikTok's global user base. The Chinese government sees Musk as a favorable option due to his perceived alignment with Chinese interests, and Xi Jinping's approval would be necessary for any sale. Musk has publicly opposed a TikTok ban, citing concerns over freedom of speech, but also pointed out the imbalance of TikTok being allowed in the U.S. while his platform, X, is banned in China. The ban is expected to significantly impact ByteDance's revenue, and discussions about Musk's potential acquisition remain ongoing. President Trump has suggested he might grant TikTok a 90-day extension to find a buyer.