Bloomberg reports that China is considering selling TikTok's U.S. operations to Musk.

• On Monday, Bloomberg News reported that the Chinese government is considering a plan for Elon Musk to acquire TikTok's U.S. business.
• As the U.S. Supreme Court considers upholding a law that may ban TikTok in the U.S., China is exploring several options, including a contingency plan, the report stated.
• A TikTok representative stated in an email to CNBC that they cannot provide commentary on works of fiction.

Elon Musk may acquire TikTok's U.S. operations to prevent the app's effective ban, according to a report by Bloomberg News on Monday.

As the U.S. Supreme Court decides whether to uphold a law requiring ByteDance to divest TikTok's U.S. business by January 19, China is considering several options, including a contingency plan, according to a report citing anonymous sources.

From the deadline onwards, Internet service providers outside the country would face penalties for aiding TikTok's operations.

The report stated that it is uncertain whether ByteDance is aware of the Chinese government's plans and TikTok and Musk's involvement in the discussions regarding TikTok's future in the U.S. It was also reported that senior Chinese officials are discussing contingency plans for TikTok's future in the U.S. as part of larger talks about collaborating with President-elect Donald Trump.

TikTok's spokesperson responded to CNBC via email, stating that they cannot provide commentary on works of fiction. Meanwhile, X has not yet responded to a request for comment.

The Supreme Court heard oral arguments on a law that could ban TikTok, which was signed into law by President Biden in April. TikTok's legal team argued that the law violates the free-speech rights of its millions of users in the U.S., while the U.S. government claimed that ByteDance's ownership of TikTok poses a national security risk.

If the Supreme Court continues to support the government, TikTok may seek Trump's help when his second term starts on January 20. Trump, who initially supported a TikTok ban, has since changed his stance. Recently, he urged the Supreme Court to delay Biden's ban implementation, citing the need for a "political resolution."

Trump's rhetoric on TikTok shifted after meeting with billionaire Jeff Yass in February, a Republican megadonor and a major investor in ByteDance, who also owns a stake in the owner of Truth Social, Trump's social media company.

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