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Experts Reveal to Bloomberg How Musk Could Become Xi's 'Powerful Friend'
Experts say Musk is "extremely pro-China" and that China could use this to influence the Trump administration. The businessman will serve as a mediator between the US and China on trade and technology issues.
Billionaire Elon Musk, one of the main supporters of Donald Trump's election campaign, could become an "influential friend" of Chinese leader Xi Jinping if the Republican Party wins the US elections, according to Forbes, Bloomberg writes, citing experts.
Musk has donated more than $100 million to support Trump, and the Tesla and SpaceX CEO has extensive business interests in China. Tesla has received tax breaks rarely offered to foreign investors in the country, the agency notes. Half of the company's electric vehicles are now made in China. Last summer, Tesla cars were included in China's government procurement list for the first time. At the same time, China remains wary of SpaceX because of its relationship with the U.S. Department of Defense.
In addition, Musk's views on many sensitive issues in US-China relations are close to those of Xi Jinping. The businessman said that Taiwan should be controlled by Beijing and expressed disagreement with the US tariffs on Chinese electric vehicles. In September, it increased from 25% to 100%. At the same time, Trump advocates raising tariffs on all products manufactured in China.
According to Derek Scissors, a senior fellow at the American Enterprise Institute, Musk is “very pro-China,” and there is a pattern to his dealings with Beijing. “He flattered the Chinese, and they gave him special treatment. They will certainly use that to influence the Trump administration,” the expert believes.
“Tesla and China have a very interdependent relationship,” said Kevin Xu, founder of Interconnected Capital. Tesla needs China because of its manufacturing scale and complex supply chain, and the company needs the country because of its “tech leadership,” he said.
Experts believe that under the new Trump administration, Musk will become a key intermediary between the U.S. and China on many issues related to technology and trade. Thanks to the entrepreneur, Xu suggested, President Trump could have a “friendlier attitude” toward China.
Bloomberg noted that Trump has shown a willingness to do business with the country despite promising to raise tariffs on Chinese goods during his campaign, and expressed admiration for the way Xi Jinping “controls 1.4 billion people with an iron fist.” “He’s a great guy, whether you like it or not,” the politician said on comedian Joe Rogan’s podcast.
Musk's views on China differ significantly from those of others around Trump. For example, former National Security Adviser Robert O'Brien called on the United States to sever all economic ties with China in an article in Foreign Policy magazine, and former Secretary of State Michael Pompeo called on the United States to recognize Taiwan's independence. He said he should do it. Do it.
Steve Orlins, president of the National Committee on China-U.S. Relations, said it was unlikely that Trump or Democratic vice president Kamala Harris would follow Musk’s advice, including on Taiwan, if they win. “Governments are smart enough to know what the interests of business interests are,” he said.