The Chinese government is contemplating a plan that would have Elon Musk acquire TikTok's U.S. operations, according to a Bloomberg News report on Monday. This contingency plan is one of several options China is evaluating as the U.S. Supreme Court deliberates on whether to uphold a law that could effectively ban TikTok in the United States. The report, citing anonymous sources, states that the contingency plan is among several options China is exploring as the U.S.
Supreme Court considers upholding a law requiring China-based ByteDance to divest TikTok's U.S. business by January 19. After this deadline, third-party Internet service providers would face penalties for supporting TikTok's operations in the country. Under the proposed plan, Musk would oversee both X, which he currently owns, and TikTok's U.S. business, Bloomberg stated. However, Chinese government officials have yet to make a decision on whether to pursue this plan, the report noted, emphasizing that it remains preliminary. It's unclear if ByteDance is aware of the Chinese government's plans and the involvement of TikTok and Musk in these discussions, the report added. Senior Chinese officials are engaged in discussions regarding contingency plans for TikTok's future in the U.S. as part of broader conversations about working with President-elect Trump. A TikTok spokesperson, in an email to CNBC, stated, 'We can't be expected to comment on pure fiction.' X did not immediately respond to a request for comment. The report comes as the U.S. Supreme Court is set to hear arguments in a case challenging a law signed in April. TikTok's legal team argues that the law infringes upon the free-speech rights of the millions of users in the U.S., while the U.S. government maintains that ByteDance's ownership of TikTok poses a national security risk. With the Supreme Court appearing to favor the government's stance, TikTok may seek to engage with Trump, whose second term begins on January 20. Trump, who expressed support for a TikTok ban during his first administration, has since shifted his position. Late last month, he urged the Supreme Court to intervene and temporarily delay the implementation of Biden's ban to provide him with time to find a 'political resolution.' Notably, Trump has been vocal about his desire to maintain a connection with the tech industry, reportedly engaging in discussions with billionaire Jeff Yass, a Republican megadonor and a major investor in ByteDance, who also holds a stake in the owner of..