Drive an hour exterior China’s industrial capital Shanghai, and you may attain Elon Musk’s Tesla gigafactory.
It manufactures nearly a million Tesla automobiles a yr and produces greater than half of all its automobiles worldwide.
However with US president-elect Donald Trump getting ready to maneuver into the White Home, the relationship between his finest buddy Elon Musk and the management of China‘s Communist Occasion is in sharp focus.
Shanghai has been the important thing to Tesla’s success, largely due to town’s former Communist Occasion secretary, now China’s premier, Li Qiang.
Chief government of Shanghai-based Auto Mobility Restricted, Invoice Russo, says: “Qiang is China’s quantity two particular person. His place in Shanghai made every part attainable for Tesla.”
“In 2017, China adjusted its coverage tips for the automotive business to permit international corporations to personal their factories in China,” he added.
“Tesla signed its deal in 2018, broke floor in 2019, and began producing the Mannequin 3 in 2020.”
The manufacturing unit opened at breakneck converse and in report time.
In April, Musk met Li Qiang in Beijing, later posting on X: “Honoured to satisfy with Premier Li Qiang. We have now identified one another now for a few years, since early Shanghai days.”
Elon Musk met Chinese language premier Li Qiang in Beijing in April 2024. Pic: AP
The Musk-China ties go all the best way to the highest.
When China’s President Xi Jinping visited the US in November 2023, he met Musk, who posted “Could there be prosperity for all” – echoing the language usually utilized by China’s authorities.
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Inside a Tesla showroom in Shanghai. Pic: Lex Ramsay
Musk has beforehand weighed into the talk over the standing of Taiwan. Two years in the past, he recommended tensions might be eased by giving China some management over Taiwan.
This remark incensed Taiwan’s leaders.
Chinese language commentator Einar Tangen, from the Taihe Institute in Beijing, says: “If Musk had stated the rest, he might face motion in opposition to the Shanghai vegetation. He isn’t going to hazard that. He is enjoying each side for his personal benefit.”
What’s in it for China?
Musk wants China, and within the months to come back, China may have Musk.
He might act as a well-connected intermediary between the Chinese language Communist Occasion and Trump, within the face of a possible international commerce warfare.
“Prefer it or not, we live in a world the place China is the dominant participant within the race to an electrical future,” says Russo.
Musk pioneered the EV business in China, however is now struggling to compete with native automotive manufacturers like BYD and Nio.
Elon Musk’s assist helped propel Donald Trump to a second time period within the White Home. Pic: AP
The relationship between Musk and Trump could become volatile, however for now Musk stands to learn.
“Donald Trump has by no means had an issue giving exceptions to buddies,” Tangen says.
“It suits his persona, that he can grant pardons and provides favours to the folks and corporations he chooses.”
Musk ‘the pioneer’
Musk is nicely thought to be a pioneer in China and most of the people converse of him extremely.
Strolling alongside the Bund waterfront space in Shanghai, Benton Tang says: “Tesla actually impacted your entire business right here.
“It pushed folks to develop and enhance the standard, the design and particularly the value.”
Chinese language automobile producers like BYD present stiff competitors for Tesla. Pic: Lex Ramsay
Curiosity within the Musk household has additionally gripped China’s on-line group.
His mom, Maye Musk, incessantly visits the nation, the place she has an enormous social media following as a senior-age celeb vogue icon and endorses a number of Chinese language merchandise together with a mattress model.
Her ebook, A Lady Makes A Plan, has been translated into Chinese language and is a bestseller right here.
Maye Musk. Pic: Reuters
In the meantime, because the countdown to Trump’s inauguration beneficial properties tempo, the highlight on the president-elect’s coterie of advisers intensifies.
In the midst of the glare is Elon Musk.
China waits to see what that can imply for them.
