China has now reportedly indicated its readiness to collaborate with Donald Trump to ensure TikTok’s continued operation in the United States.
On Monday, the Chinese Foreign Ministry announced that enterprises are permitted to independently determine their operations and acquisitions, reversing the government’s earlier stance that it would prohibit any compelled sale of TikTok.
The ministry’s initial response followed Trump’s statement on Sunday, the day prior to his inauguration, expressing his desire for a 50-50 division of power of the app between U.S. and Chinese interests.
Zhang Yiming, the founder of TikTok, possesses a relationship that may facilitate dealmaking: Elon Musk.
Zhang, the wealthiest individual in China, and Musk, a confidant of Trump and the world’s richest person, conversed last year after it became evident that Congress would enact legislation to prohibit TikTok in the United States, as reported by sources familiar with the situation.
The legislation enacted in April 2024 became effective on Sunday subsequent to a Supreme Court decision affirming its constitutionality.
Following a tumultuous weekend during which TikTok experienced a 14-hour outage in the U.S., the application regained functionality, attributing its reinstatement to promises provided by Trump.
Zhang possesses a 21% equity interest in TikTok’s Beijing-based parent firm, ByteDance, and exerts overwhelming control through enhanced voting rights.
Foreign Ministry spokeswoman Mao Ning emphasized that any agreement must adhere to Chinese regulations, highlighting the Chinese government’s role.
Musk has consistently opposed the prohibition of TikTok and maintains generally favorable relations with Chinese officials.
Tesla, the electric vehicle enterprise founded by Musk, maintains a significant presence in China.
Chinese officials have internally deliberated the possibility of permitting trusted Americans, including Musk, to invest in TikTok’s U.S. operations.
It is unclear whether Beijing directly engaged in discussions over this concept with either Musk or the leadership of ByteDance.
Musk conferred with Chinese Vice President Han Zheng, who is present for Trump’s inauguration, over the weekend.
ByteDance has sought to prevent the perception that it is adhering to Beijing’s directives in shaping TikTok’s future. Zhang has intentionally separated himself from Chinese officials, according to sources close to him.
The creator of ByteDance, who no longer occupies an official role within the company, is not a member of the ruling Communist Party of China.
Kevin Zhou, the founder of the Chinese tech-news platform Pandaily, stated that he first introduced Zhang to Musk in 2014, prior to the establishment of TikTok.
Zhou stated that he joined the relatively obscure entrepreneur on a visit to Tesla’s California headquarters.
[READ MORE: Bannon Denounces Mark Zuckerberg as ‘Criminal’]
