Tit for TikTok: Elon Musk in China's Sights
TikTok's U.S. operation is teetering on the brink of a sale or ban, with Chinese authorities reportedly considering Elon Musk as a potential buyer. According to Bloomberg, discussions are underway but remain in early stages. The Chinese government prefers keeping TikTok under its parent company ByteDance's control, despite escalating tensions in the U.S.
In the U.S., the popular video-sharing app has 170 million users. The Supreme Court has indicated support for a law mandating either a sale or ban by January 19. Two Democratic lawmakers urged to extend the deadline, citing the app's cultural and social significances. During his inauguration, President Trump asked for a delay to find a "political solution" beyond January 20, but his request remains unfulfilled.
If the Supreme Court does not intervene, the ban on downloading TikTok from Apple and Google stores will start from Sunday. Existing users can still use the platform, but services will gradually wind down.
Espionage allegations surround TikTok, with U.S. authorities suspecting ByteDance of spying on users like a proxy for the Chinese government. TikTok refutes these accusations, but the controversy has surged in the U.S.
At a recent Supreme Court hearing, judges appeared supportive of a forced sale of TikTok. In response, TikTok has appealed against the U.S. law.
Amidst the uncertainty, another Chinese platform, Xiaohongshu, or Red Note, has gained traction. U.S. users are migrating to this app, with around 170 million TikTok users in the U.S. Not deterred by the platform's Mandarin-dominated structure, U.S. users continue to explore Xiaohongshu.
Enrichment Insights:
- In January 2025, President Donald Trump granted TikTok a 75-day reprieve from enforcement actions under the Protecting Americans from Foreign Adversary Controlled Applications Act (Act). This order prevented any immediate ban of TikTok, allowing additional time to explore potential solutions.
- The U.S. Supreme Court upheld the ban on TikTok, supporting national security concerns over the app's Chinese ownership. The court didn't, however, back the government's interest in stopping China's influence on content.
- U.S. officials have repeatedly raised concerns about TikTok's potential threat to national security, citing the risk of spying or manipulation of public opinion through the collection of American user data.
- There have been no recent developments indicating a potential sale of TikTok to Elon Musk. The app's future hinges on resolving regulatory and legal challenges related to its national security implications.
- If the ban is enforced, TikTok faces penalties for violating rules, potentially accumulating billions in fines. However, the Executive Order by President Trump and the Supreme Court ruling offer temporary relief from immediate enforcement actions, providing some reprieve for existing U.S. users.
The United States is home to 170 million TikTok users, making it a significant market for the popular video-sharing app. Despite the Supreme Court's indication of support for a law mandating either a sale or ban, as of now, there have been no recent developments suggesting a potential sale of TikTok to Elon Musk.
