As a testimony of the importance of the China market, a renewed version of the model and Tesla was launched here in January before the United States.
To maintain their strong business, experts say, Musk needs support from the Chinese government.
“It is difficult for most people who have not lived within China to understand the power of regulators,” Dunne said. “You request a license in the United States or Europe, will eventually obtain a permit or license. In China, it is a mass negotiation. ”
As Tesla faces the intensification of the competition of the creators of Chinese EV, he launched a software update last month destined to closely imitate its autonomous driving characteristics in the United States.
Tesla FSD software has not yet been approved in China.
That is why it is vital for Musk to remain in good thanks to Beijing, especially when his companies face a violent reaction in the United States, Europe and other places for his work for the Trump administration.
“Beijing could decide to ban Tesla. They could submit Tesla to all kinds of investigations nationwide, ”said Stone Fish. “There is almost no limit to what they could decide to do.”
That can explain why, even as Musk has been a vowel in his opinions about politics in countries as varied as Germany, Canada and Brazil, he has been relatively quiet about what happens in Beijing.
“Musk is incredibly gentle when it comes to China. It’s impressive, ”said Stone Fish.
“It has been much weaker than even Chinese businessmen in their lack of will to criticize China or say anything that can be interpreted as a negative for the party,” he said.
Musk has opposed US tariffs in Chinese electric vehicles, after initially supporting them.
“Neither Tesla nor I asked for these rates,” he told CNBC at a Paris Technology Conference in May after President Joe Biden announced a 100% tariff on Chinese manufacturing evidence imports. (The EV tariffs of US
Musk has also made favorable comments on China’s position on Taiwan, an autonomous island democracy that Beijing affirms as its territory and says that it is determined to obtain control even if it means using force.
“There is some inevitability in the situation,” he told CNBC in 2023.
Such comments have been praised by Chinese officials and convicted by Taiwan, who rejects Beijing’s sovereignty statements.
Some believe that Musk’s warm relations with the Chinese government could be a blessing for ties between the United States and China.
“Elon Musk can play a positive, constructive and even link role to connect to China and the United States during this difficult time, particularly to deal with Trump,” said Wang Yiwei, director of the Institute of International Affairs of the Renmin University of China in Beijing.
Others see more potential risk than reward, including US legislators. Last month, Republican and Democratic leaders of the Select Committee of the House of Representatives warned that Beijing could try to use Musk to convince Trump towards more favorable policies.
“I think the PCCH will try to take any opportunity,” said representative John Moolenaar, Republican of Mich., President of the Committee, at an Institution Brookings event in Washington last month.
“Are people looking for that? And do you ensure that your lane is one that does not influence China’s policy? I think that is the case, ”he said.
The representative Raja Krishnamorthi, D-Bill., The committee classification member, said that the Chinese authorities “absolutely” see Musk “as an asset for them in any type of negotiations”, a way to avoid the officials of the Trump administration as less friendly for China, such as the Secretary of State, Marco Rubio and the national security advisor Mike Waltz.
“I hope the president is listening to everyone very carefully,” said Krishnamorthi at the same event.
Even Musk Chinese employees have doubts about Musk’s growing role in Washington.
“As a businessman, he must focus on the business,” said a worker at the Tesla factory in Shanghai, who refused to be appointed by the fear of reprisals. “After all, government affairs must be handled by professionals.”
Eunice Yoon reported from Shanghai, and Jennifer Jett reported from Hong Kong.
