• Tue. May 28th, 2024

Elon Musk’s Close Ties with Chinese Government Raise Concerns over Dependence and Potential Compromise

BySamantha Nguyen

Mar 28, 2024
Elon Musk’s Ties to China Make him Vulnerable: NYT

Elon Musk, CEO of Tesla, was granted special privileges by the Chinese government to set up a plant in China. This has raised concerns among critics who believe that this relationship could leave Musk vulnerable to leverage from Beijing. According to reports by The New York Times, Musk’s close ties with the Chinese government included concessions such as low-interest loans and changes in ownership rules to facilitate the setup of the plant in Shanghai in 2019.

Today, the China plant accounts for more than half of Tesla’s global deliveries, making the company increasingly reliant on the low production costs in China’s competitive electric vehicle market. However, despite this success, Tesla is facing challenges in China. The company is competing with its own strong electric vehicle industry and is facing pressure from Beijing to localize production.

Musk’s close relationship with China has also raised concerns among US lawmakers, particularly given his ownership of SpaceX, a satellite company with valuable Pentagon contracts. There have been fears that his pro-China views on controversial issues such as Taiwan could compromise SpaceX’s relationships with US military and intelligence agencies. Despite these concerns, there has been no official comment from Tesla, SpaceX or Musk on the allegations raised by The New York Times.

Business Insider has reached out to these companies for comment and awaits their response.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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