China is discussing using Elon Musk as broker for TikTok deal

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Beijing officials are discussing using Elon Musk as a broker to sell TikTok's U.S. operations, days before the Chinese social media app faces a ban from Washington, according to two people familiar with the matter.

The bill, passed by Congress in April and taking effect on Sunday, requires TikTok's Beijing-based parent company ByteDance to sell its stake in the app or face a ban over security concerns.

Chinese officials hope Musk can help reach a deal to prevent the platform from being forced to shut down, according to people familiar with the matter.

Among them is Musk, the billionaire owner of social media app X and a close confidant of Donald Trump, who helped persuade the US president-elect to avoid imposing a ban.

A person familiar with the matter said discussions at this stage are “very preliminary and mainly brainstorming.”

People familiar with the matter added that ByteDance and the TikTok team remain primarily focused on winning legal battles with the U.S. government to prevent the bill from taking effect.

Musk did not immediately respond to a request for comment from the Financial Times.

Bloomberg reported earlier Tuesday that Chinese officials were considering selling TikTok to Musk. The company said in response to the report: “We cannot be expected to comment on matters that are pure fiction.”

TikTok’s “divest or ban” law takes effect one day before Trump takes office on Monday. The U.S. Supreme Court has indicated it may uphold the legislation.

Trump pledged to “save the app” and called for a delay in the law, while Musk opposed any ban on TikTok's U.S. operations.

Musk has good relations with Chinese officials, giving him influence in brokering deals such as TikTok's divestment. The Tesla CEO has conducted business in China in recent years and interacted frequently with government officials.

Last April, the billionaire flew to Beijing to meet with President Xi Jinping's No. 2 Li Qiang, a move that experts said showed Beijing's approval of Musk and his technology plans.

Musk also has a strong financial interest in maintaining friendly relations with China, as Tesla's share of electric vehicle sales there has plummeted over the past year.

Earlier this month, the automaker launched a major update to the Model Y in China.

TikTok has exploded in popularity among teenagers in recent years and currently has 170 million U.S. users. But the app has come under scrutiny in Washington over concerns it could be used by Beijing for espionage purposes or to spread propaganda.

At a U.S. Supreme Court hearing last week, TikTok denied the accusations and claimed the law violated First Amendment protections of free speech.

Trump implored the court to delay the legislative deadline to give him “an opportunity to pursue a political solution to the issues in this case” when he returns to the White House later this month.

Musk posted on X in April this year: “In my opinion, TikTok should not be banned in the United States, although such a ban may benefit the X platform,” he wrote on and freedom of expression. That’s not what America stands for.”

TikTok argued that a spinoff would not be technically “feasible” before the deadline. Under China's export laws, Beijing has a say in any divestment, but it has also expressed opposition to the sale, calling the laws “a blatant act of commercial robbery.”

TikTok lawyer Noel Francisco of Jones Day said on Friday that a divestment would be “extremely difficult in any time frame.” Asked what would happen if the company loses the case on January 19, he responded: “From what I understand, we'll be in trouble.”

China’s Cyberspace Administration of China and China’s Ministry of Commerce did not return calls outside business hours.

Additional reporting by Hannah Murphy in San Francisco and Stefania Palma in Washington, D.C.