After years of opposing any sale of the app’s U.S. operations, the Chinese Foreign Ministry recently signaled a willingness to allow TikTok’s parent company, ByteDance, to make independent decisions regarding its future. This change in tone suggests that Beijing may be open to facilitating a deal that would keep TikTok running in the U.S. under partial American ownership.
In a press conference, Mao Ning, spokesperson for China’s Foreign Ministry, stated, “For such actions as corporate operations and acquisitions, we always believe they should be decided independently by companies based on market principles.” She added that Chinese companies involved in such decisions must also comply with national laws and regulations. This marks a significant shift from earlier rhetoric, in which Beijing had staunchly opposed any forced sale of TikTok.
Mao also highlighted TikTok’s positive presence in the U.S., saying, “TikTok has been operating in the U.S. for years and is loved by American users.” She expressed hope that the U.S. would provide an “open, fair, just, and non-discriminatory business environment for market entities from all countries.”
This softer stance comes shortly after President-elect Donald Trump proposed a 50-50 ownership split between U.S. and Chinese interests to address national security concerns. The announcement coincided with the enforcement of a new U.S. law that mandates either the sale of TikTok’s U.S. operations or a complete ban of the app within the country.
The Background: TikTok’s U.S. Controversy
TikTok’s troubles in the U.S. began years ago, with lawmakers expressing concerns about its ties to ByteDance, a Beijing-based company. Critics argue that the app’s Chinese ownership poses a national security risk, with fears that user data could be accessed by the Chinese government. These concerns led to the passage of a federal “divest-or-ban” law in 2024, which was later upheld by the Supreme Court.
The law went into effect on January 19, 2025, resulting in a temporary shutdown of TikTok in the U.S. The app resumed operations only after assurances from the incoming Trump administration that a resolution was being negotiated. This episode is reminiscent of former President Donald Trump’s attempts to ban TikTok in 2020, which ByteDance managed to circumvent through negotiations involving Oracle and Walmart. However, that deal never fully materialized.
Zhang Yiming, the founder of ByteDance and one of China’s wealthiest individuals, has sought to distance himself from Beijing’s influence. While he holds a 21% equity stake in ByteDance and retains majority voting control, Zhang is not a member of the Chinese Communist Party. His deliberate efforts to maintain independence could help facilitate a deal that satisfies both U.S. and Chinese authorities.
Elon Musk: A Potential Buyer
One of the most intriguing aspects of this developing story is the potential involvement of Elon Musk. Musk, the CEO of Tesla and owner of the social media platform X (formerly Twitter), has emerged as a possible buyer for TikTok’s U.S. operations. Musk’s connection to ByteDance founder Zhang Yiming dates back to 2014 when Zhang visited Tesla’s California offices. Zhang reportedly described Musk as his “hero” and compared him to Apple’s Steve Jobs, noting that Musk was “bolder and had greater vision.”
The two reconnected last year when Musk publicly opposed a TikTok ban, arguing that such actions could stifle free speech. Kevin Zhou, founder of the Chinese tech-news outlet Pandaily, reportedly facilitated the reconnection. Musk’s business ties to China—including Tesla’s massive Shanghai Gigafactory and billions in revenue from the Chinese market—position him as a trusted figure in Beijing’s eyes.
Chinese officials have internally discussed allowing Musk or similarly trusted Americans to invest in TikTok’s U.S. operations. Mao Ning’s statement, coupled with these internal discussions, suggests that Beijing sees Musk as a potential ally in resolving the TikTok impasse.
Why China Might Support a Sale
Beijing’s apparent willingness to consider a sale aligns with several strategic goals:
- Retaining Influence: Selling TikTok’s U.S. operations to Musk or another trusted party could allow China to maintain some level of indirect influence over the platform.
- Economic Leverage: A deal could serve as a bargaining chip in trade negotiations with the Trump administration. President-elect Trump has threatened tariffs on Chinese goods, which Beijing is eager to avoid.
- Avoiding Total Loss: By facilitating a sale, ByteDance can retain some value from its U.S. operations rather than losing access to the American market entirely.
While the potential for a sale is promising, significant challenges remain. For Musk, financing a deal estimated at $40 billion to $50 billion would be a monumental task. Although he is one of the world’s richest individuals, much of his wealth is tied up in Tesla stock. His controversial $44 billion purchase of X left financial scars, with banks still struggling to offload debt from that deal.
Additionally, any sale would require approvals from both the U.S. and Chinese governments. In China, export restrictions on sensitive technology—such as TikTok’s recommendation algorithm—could complicate the transaction. Analysts believe Beijing might allow the sale of TikTok without its algorithm, but that could diminish the app’s value.
Another concern is user backlash. Many TikTok users are wary of Musk’s potential ownership, fearing that his controversial management of X—which included algorithm changes and an increase in misinformation—could harm TikTok’s vibrant community. Some users have even expressed a preference for TikTok to be banned rather than sold to Musk.
China’s softened stance on TikTok’s future represents a potential turning point in U.S.-China relations. By signaling a willingness to allow a sale, Beijing may be opening the door for a compromise that benefits all parties involved. For Elon Musk, acquiring TikTok could bolster his influence in the social media industry and provide new opportunities for growth.
ACZ Editor: It will be critical to make sure that TikTok is completely separated technically from China. Data is easily stolen, and algorithms are easily controlled by technicians. Perhaps some kind of “security clearance” is in order?