Users switch to another video app China examines sale of Tiktok's US business to Elon Musk

Tiktok is threatened with closure in the USA in a few days if the app is not sold. According to the financial service Bloomberg, a surprising solution is now being considered in Beijing. In the meantime, US Tiktok users are moving to another Chinese platform.

DPA

14.01.2025, 05:55

14.01.2025, 06:43

dpa

According to a media report, the Chinese government is considering the sale of Tiktok 's US business to tech billionaire Elon Musk, which is threatened with closure. The option of Musk's online platform X taking control of Tiktok US and operating the services together has been discussed in Beijing, wrote the financial service Bloomberg, citing informed sources.

The Tiktok video app is owned by the Bytedance Group, which has its headquarters in China. In the US, there are warnings that the Chinese government could gain access to US users' data and organize influence campaigns on the platform.

For this reason, Bytedance must separate from Tiktok in accordance with US law. The 270-day deadline set for this expires on January 19. Without a sale, the company could face closure in the USA on that day. Tiktok rejects the accusations and has so far refused to separate from Bytedance.

Difficult stand before the Supreme Court

Instead, Tiktok appealed to the US Supreme Court in the hope of at least obtaining a stay. At a hearing, however, the judges were unconvinced by the argument that the law violates the freedom of speech enshrined in the US Constitution.

Donald Trump, who will be sworn in as president on January 20, also called on the judges to give him more time to reach a deal on Tiktok. The app has more than 170 million users in the USA.

Although Tiktok always emphasizes that Bytedance is majority-owned by international investors, the parent company's headquarters in Beijing means that it also has to comply with the requirements of the authorities. The government also has a say in the sale: This is because the algorithm that selects videos for users was developed in China. And Beijing has banned the transfer of such software without special permission.

China is important for Tesla

Musk, who also runs the electric car manufacturer Tesla, donated more than 250 million dollars to Trump's election campaign and is currently one of his closest confidants. He is regarded as a businessman with very good relations with the Chinese leadership, from whom he has repeatedly received high-ranking receptions during his visits to the People's Republic.

China is one of Tesla's most important sales markets. The company was also the first foreign car manufacturer to be allowed to build a factory in Shanghai that is wholly owned by Tesla. Others have always had to set up joint ventures with Chinese partners. Some observers see the influence that Musk could exert on Trump in the White House in future as an advantage for China.

US users move to alternative Chinese platform

Meanwhile, a few days before the planned ban of Tiktok from the app stores of major US companies, US users began to move to the Chinese platform. They switched to the Chinese platform Xiaohongshu.

The Xiaohongshu network, which is also known by the English name Red Note, shot to the top of the list of downloaded applications in the US tech giant Apple's app store on Monday. Xiaohongshu is almost entirely in Mandarin, but that doesn't seem to be stopping interested parties in the US.

"Oh, you don't want the Chinese to have our very sensitive personal data?" influencer Jen Hamilton asked sarcastically in a Tiktok video for her 3.9 million followers, in which she promoted her move to Xiaohongsh. "Come over," she urged the other "Tiktok refugees".