Social media platform TikTok has refuted reports that China is investigating the sale of the app’s US operations to Elon Musk, calling the claims “pure fiction.”
The rumors came from a Bloomberg report suggests that Chinese officials were evaluating Musk’s acquisition of TikTok’s US assets to circumvent a possible ban under US law that would take effect on January 19.
The report, citing anonymous sources, claims that Musk’s history of successful business dealings in China and his relationship with Beijing make him a favorable candidate for such a deal.
“We cannot be expected to comment on pure fiction,” a TikTok spokesperson said Variety.
The US government has expressed concerns about Chinese ownership of TikTok, citing national security risks. Lawmakers have said they fear the app could lead to data misuse, surveillance or propaganda.
Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act last year, requiring TikTok’s parent company ByteDance to divest its TikTok shares or face a nationwide ban.
TikTok has appealed the law to the Supreme Court, noting how the ban violates the First Amendment rights of its 170 million U.S. users.
On January 10, the Supreme Court heard TikTok’s emergency appeal, but seemed more receptive to the government’s position.
If the ban goes through, Apple, Google and web hosting providers would have to block TikTok’s distribution in the US unless ByteDance complies with the law.
Musk, disinformation and crypto ties
Speculation linking Musk to a TikTok takeover has sparked debate about his influence in technology and politics.
Since acquiring X, formerly Twitter, for $44 billion in 2022, Musk has used the platform to influence public sentiment, including in the political and crypto space.
In particular, his tweets and messages of support have fueled sentiment around cryptocurrencies like Dogecoin (DOGE), with significant price increases linked to his comments.
During the 2024 presidential election, Musk’s posts reportedly amplified misinformation about the election Center for Combating Digital Hate (CCDH) reports that at least 87 of its messages are false or misleading.
Musk’s connection to newly elected President Donald Trump, the Republican candidate in the 2024 election, also raised concerns.
The billionaire used Twitter to share Trump’s campaign stories. It also led to the Dogecoin price rising to a three-year high as Musk teased the creation of a Department of Government Efficiency (DOGE) under the president-elect’s administration.
TikTok’s fate hangs in the balance as the ban deadline approaches. For now, the platform continues its fight to maintain access for millions of American users.
Edited by Stacy Elliott.
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