Elon Musk has emerged as a significant figure in US politics while maintaining substantial financial interests in China, raising questions about the implications for US-China relations. Following deep cuts in government spending during the Trump administration, Musk’s influence has increased, particularly regarding his companies.
Musk’s electric vehicle manufacturer, Tesla, operates two facilities in Shanghai, including a recently opened $200 million Megapack battery plant. This facility is crucial for Tesla’s ongoing success in China, where the company sold over 657,000 vehicles last year—accounting for more than a third of its global sales.
Despite these successes, Musk’s ties to the Chinese government may create complications, especially if US-China relations deteriorate. Observers note that Musk has largely remained silent on political issues in China, contrasting with his outspoken opinions on politics in other countries. His careful approach may stem from the necessity of maintaining positive relations with Beijing to protect his business interests.
While some view Musk as a potential bridge between the US and China during a time of heightened tensions, others raise concerns. Representative John Moolenaar, chairman of the House select committee on China, suggested that Beijing may try to leverage Musk’s influence to sway Trump toward more favorable policies.
Musk’s previous support of US tariffs on Chinese EVs has also shifted; he recently stated, “Neither Tesla nor I asked for these tariffs,” following Trump’s push for a 100% tariff on Chinese EV imports. Additionally, Musk has made statements about the inevitability of the situation regarding Taiwan, comments that have drawn mixed reactions.
Despite the complexities of his position, Musk’s growing influence in Washington has left some questioning whether he should focus on business instead of political matters. A Tesla employee in Shanghai remarked, “As a businessman, he should focus on business; government affairs should be handled by professionals.”
As the diplomatic landscape evolves, the role that Musk plays in shaping US-China relations remains uncertain.
