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Officials in Beijing are discussing using Elon Musk as a broker in a potential sale of TikTok’s US operations, days before the Chinese-owned social media app faces a ban from Washington, according to two people familiar with the talks.
The bill passed by Congress in April, which requires TikTok’s Beijing-based parent ByteDance to sell its stake in the app or face a ban because of security concerns, comes into effect on Sunday.
According to the people familiar with the discussions, Chinese officials are hoping Musk could help broker a deal that might prevent the platform from being forced to shut down.
This includes Musk, the billionaire owner of social media app X and close confidant of Donald Trump, helping to persuade the US president-elect to avoid implementing a ban.
The discussions are “very preliminary and mostly brainstorming” at this stage, according to one of people.
The people added that ByteDance and TikTok teams were still primarily focused on winning the legal battle with the US government to stop the bill coming into effect.
Musk did not immediately respond to a request for comment from the Financial Times.
Bloomberg reported earlier on Tuesday that Chinese officials were weighing a sale of TikTok to Musk. The company said in response to the report: “We can’t be expected to comment on pure fiction.”
The divest-or-ban law on TikTok comes into force the day before Trump is inaugurated on Monday. The US Supreme Court has indicated it is likely to let the legislation stand.
Trump has promised to “save the app” and called for a delay in the implementation of the law, while Musk has come out against any ban of TikTok’s US operations.
Musk enjoys a good relationship with Chinese officials, putting him in an influential position to broker deals such as the TikTok divestment. The Tesla chief has done business in China in recent years, with frequent interactions with government officials.
Last April, the billionaire flew to Beijing and met Li Qiang, President Xi Jinping’s number two, in a move that experts say indicated Beijing’s approval of Musk and his technology plans.
Musk also has a strong economic interest in keeping a friendly relationship with China, as Tesla’s share of Chinese electric vehicle sales has dropped significantly over the past year.
Earlier this month, the carmaker debuted a major update of its Model Y in China.
TikTok has exploded in popularity among teenagers in recent years and now has 170mn US users. But it has come under scrutiny in Washington due to concerns that the app could be wielded by Beijing for espionage purposes or to spread propaganda.
During hearings at the US Supreme Court last week, TikTok denied the accusations and claimed the law violated First Amendment protections for free speech.
Trump has implored the court to delay the legislative deadline to allow for “the opportunity to pursue a political resolution of the questions at issue in the case” when he returns to the White House later this month.
Musk posted on X in April: “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” he wrote on X. “Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”
TikTok has argued a spin-off would be technically “unfeasible” before the deadline. Beijing, which would have a say on any divestment, according to China’s export laws, has also said it opposes a sale and has branded the law a “blatant act of commercial robbery”.
Noel Francisco of Jones Day, a lawyer for TikTok, said on Friday that a divestiture would be “exceedingly difficult under any timeframe”. Asked what would happen on January 19 if the company lost this case, he replied: “As I understand it, we go dark.”
The Cyberspace Administration of China and China’s Ministry of Commerce did not respond to calls made outside business hours.
Additional reporting from Hannah Murphy in San Francisco and Stefania Palma in Washington DC
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