Musk as a 'Broker' Instead of Acquiring TikTok? Chinese Authorities "Expect Assistance"

Chinese authorities are reportedly considering utilizing Elon Musk, CEO of Tesla and a key figure in the upcoming Donald Trump administration, as a 'broker' in the potential sale of TikTok's U.S. operations, according to foreign media reports. Previously, TikTok dismissed reports that Chinese authorities were potentially exploring the option of selling TikTok to Musk CEO as "complete fiction."

Reuters Yonhap News

The Financial Times (FT) reported on the 14th (local time), citing multiple sources, that Chinese officials are discussing the possibility of using Musk CEO as a broker ahead of the implementation of the so-called 'TikTok Ban Act.' The TikTok Ban Act, which passed the Senate last April, essentially bans TikTok in the U.S. starting from the 19th unless TikTok sells its U.S. operations.

Sources explained, "Chinese officials expect that Musk could help mediate a deal to prevent the forced shutdown of the TikTok platform." It is believed that Musk, a close confidant, could persuade the incoming Trump administration not to ban TikTok's U.S. operations. Earlier, in April last year, Musk CEO expressed his opinion, stating, "Personally, I think TikTok should not be banned in the U.S.," adding, "It conflicts with freedom of expression and does not align with the values the U.S. pursues."

However, one source added that these discussions are "very preliminary and at the brainstorming stage." TikTok and its parent company ByteDance still intend to respond to the U.S. sale demands through legal action. Nevertheless, TikTok has lost in both the first and second trials in U.S. federal courts, and the outlook for the Supreme Court granting an injunction to halt the law's enforcement is not promising.

On the previous day, Bloomberg News, citing sources, reported that Chinese authorities are considering selling TikTok's U.S. operations to Musk CEO. There is talk of a joint management approach where Musk's company X (formerly Twitter) would control TikTok. TikTok immediately dismissed the report as "complete fiction," but it was widely assessed that China might use Musk CEO as a channel to extend an olive branch to the incoming Trump administration.

FT also mentioned that Musk CEO visited Beijing last April and held talks with Chinese Premier Li Qiang and others, noting that "he maintains good relations with Chinese officials, putting him in a good position to mediate the TikTok sale." Tesla, operated by Musk CEO, also runs a factory in Shanghai, China. As Tesla's market share in China has significantly declined, maintaining a friendly relationship with China is expected to bring economic benefits to Musk CEO as well.

The TikTok Ban Act will take effect on the 19th, the day before Trump’s inauguration. In this regard, the incoming Trump administration has requested the Supreme Court to postpone the ban deadline to allow time to resolve the TikTok issue during the term. According to Bloomberg Intelligence, the value of TikTok's U.S. operations is estimated to be between $40 billion and $50 billion.