TAIPEI (Taiwan News) — The US House of Representatives' select committee on China said Tuesday that Beijing may leverage its relationship with Elon Musk to influence the Trump administration.
Representatives John Moolenaar and Raja Krishnamoorthi, committee chairs, said Beijing could negotiate with Trump through Musk, who has vast business interests in China, Reuters reported. The CCP could use business leaders like Musk to sidestep China hawks in negotiations, Krishnamoorthi added.
The chair voiced concerns that Trump could put US interests, including support for Taiwan, up for negotiation in favor of better trade policies. The president’s praise for Chinese leader Xi Jinping (習近平) and Russian President Vladimir Putin has led analysts to worry Trump could try to make a deal with Beijing that sidelines Taiwan.
According to Krishnamoorthi, "They absolutely see him as an asset to them in any kind of negotiations, a way to bypass Rubio, a way to bypass Waltz, a way to bypass those whom they see to be less friendly to them on their issues.” Moolenaar added, "To the question of Elon Musk, I do believe that the CCP will try and leverage any opportunity.”
Musk has previously expressed his admiration for China. He has long maintained contact with CCP officials, including Xi and the country’s second-ranking official, Premier Li Qiang (李強).
Musk holds influence in the Trump administration, but he stands apart from Trump’s aides and advisers on one issue: China. The report noted his car company Tesla's dependence on the Chinese market.
Tesla depends on China for both production and sales of its electric vehicles, per a Nikkei analysis. Data shows the company relies on Chinese companies for nearly 40% of its battery supply chain.
Tesla’s Shanghai plant accounts for most of the company’s profits and over half of global deliveries. It was constructed with the support of the Shanghai government and Chinese banks, which granted Tesla favorable tax and interest rates.
Considering Musk's close ties with Trump, China could use his reliance on the Chinese market as a bargaining tool to influence Trump and win policies favorable to Beijing. Krishnamoorthi said, “My hope is that the president is going to be listening to everybody very carefully.”
