Portrait of Elon Musk
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Elon Musk on China

Diplomatic pragmatist (strong)

Elon Musk holds a complex and evolving view of China, heavily influenced by the critical role the country plays in Tesla's global manufacturing and sales strategy. His public commentary has largely shifted to praise for China's economic progress and infrastructure development, particularly after securing concessions for the Shanghai Gigafactory.

This positive business engagement has seen Musk actively court Chinese leadership, including meeting with high-ranking officials like Premier Li Qiang and President Xi Jinping, and advocating against decoupling the US and Chinese economies. However, this strong commercial alignment coexists with geopolitical commentary, such as suggesting that Taiwan and China should resolve cross-strait relations, which is viewed critically by some in Washington.

Furthermore, Musk's business operations are a source of ongoing tension, as Beijing has granted Tesla special privileges, making the company dependent on maintaining good relations. His Starlink satellites also present a point of friction, with China warning the rapid expansion poses safety and security risks to its space station and strategic interests.

Context

Elon Musk's relationship with China is central to his business success, as the country is Tesla's second-largest market and the site of its largest factory in Shanghai. This factory accounts for a significant portion of Tesla's global vehicle deliveries.

Due to this dependence, Musk has often engaged diplomatically with Chinese leadership to protect Tesla's interests, including lobbying for and receiving special concessions for the Shanghai plant, such as ownership rule changes and favorable loans. His business ties extend to SpaceX, although he maintains the companies are separate entities, raising concerns among some U.S. lawmakers about potential leverage Beijing might hold.

Actions Taken

  1. Diplomacy/Business Meeting
    Met with Chinese Foreign Minister Qin Gang and stated that U.S.-Chinese relations require “mutual respect, peaceful coexistence and win-win cooperation,” while also receiving reassurance that foreign companies are welcome. Musk also told officials he opposes decoupling the U.S. and China economies.
  2. Public Endorsement
    Praise for the Communist Party of China's (CCP) centenary, stating the “economic prosperity that China has achieved is truly amazing, especially in infrastructure!” and encouraging people to visit the country.
  3. Diplomacy/Business Meeting
    Held a surprise visit in Beijing to convene with Chinese Premier Li Qiang and met with President Xi Jinping in San Francisco.
  4. Business Investment
    Tesla's Shanghai Gigafactory, its largest globally, began construction in 2019, benefiting from low-interest loans from state-owned banks and a reduced corporate tax rate.

Key Quotes

"There is just a lot of super talented hardworking people in **China** [who] strongly believe in manufacturing... They won't just be burning midnight oil. They'll be burning 3 a.m. oil. They won't even leave the factory type of thing, where in America people are trying to avoid going to work at all."

Financial Times interview July 1, 2022 — Describing Chinese factory workers in comparison to American workers.

"The economic prosperity that **China** has achieved is truly amazing, especially in infrastructure! I encourage people to visit and see for themselves."

Social media post (X) July 1, 2021 — Responding to a post by Chinese state-owned media on the CCP centenary.

"China's progress in advanced infrastructure is more than 100 times faster than the US."

Social media post (X) January 1, 2018 — Comparing Chinese infrastructure development speed to that of the US.

Related Positions

  • Taiwan Cross-Strait Relations Musk has suggested that Taiwan and China should resolve their cross-strait relationship, reflecting a position on a major geopolitical issue.
  • US-China Economic Decoupling Musk has publicly expressed opposition to the decoupling of the U.S. and China economies.

Criticism

Alex Gladstein (Human Rights Foundation)

Countered Musk's praise for China's prosperity by stating that a visit must include seeing the 'prison camps in Xinjiang, the colonization of Tibet, the state-of-the-art AI-powered surveillance apparatus, or conquered Hong Kong' to get the full picture.

Representative Jim McGovern

Stated that Musk is 'bending over backwards to ingratiate himself with Chinese leaders' because his bottom line depends on staying in China's good graces, especially with plans for an AI data center there.

Chinese representative at the UN

Warned that the unchecked proliferation of commercial satellite constellations like Starlink poses 'pronounced safety and security challenges,' citing near collisions with the Chinese space station in 2021.