The US is concerned about Elon Musk’s relationship with China

22/03/2022 10:30 GMT+7

According to the Wall Street Times, while SpaceX may not have direct contact with China, some Republican lawmakers (USA) are concerned that China is accessing confidential information through its foreign suppliers. this.

Besides, the fact that Tesla opened a showroom in the Xinjiang area is also controversial. It is worth noting that the showroom opened just a few weeks after US President Joe Biden signed a law banning the import of goods from Xinjiang, unless the manufacturer proves not to use forced labor.

Elon Musk speaks during the handover ceremony of Tesla Model 3 in Shanghai, China in January 2020. (Image: Getty Images)

Speaking to The Wall Street Journal, Utah’s Chris Stewart said that while he’s a fan of Musk and SpaceX, “anyone would be worried if there were financial problems with China.”

Business Insider’s journalist Linette Lopez once analyzed that Musk did not break any US laws when he opened a showroom in Xinjiang, however, the move seemed to be “spit” in the face of Washington. The chairman of the Union of American Manufacturers, Scott Paul, called Tesla’s actions “despicable” on the BBC in January.

In addition, some lawmakers are concerned about the lack of clear lines between SpaceX, Tesla and China. Tesla develops advanced battery boxes for the Chinese, and China adopts Musk’s cheaper battery technology. In particular, the US and China are competing fiercely on the space technology front.

China is one of Tesla’s biggest markets, thanks in large part to the backing of its government. Mr. Xi Jinping’s government is lending Musk low interest rates, cheap land sales and other incentives for Tesla to open a large factory in 2019. This is where half of Tesla cars will be produced globally by 2021. Marco Rubio of Florida states that every company operating in China will be under great pressure.

In December 2021, Mr. Rubio urged colleagues in the Senate to support the US Financial Market Integrity and Privacy Act. If passed, it would ban American businesses from investing in Chinese companies that pose a threat to US national security.

While Tesla owns the factory, China is still the land owner. The contract between the two parties requires Tesla to incur a certain tax in order to stay. Tesla also opens its first European factory in 2021, using a series of temporary permits.

Concerns have grown with Musk’s praise of China. For example, on the 100th anniversary of the founding of the Communist Party of China, Musk tweeted, “the economic prosperity China has achieved is truly amazing, especially in infrastructure.” During a July 2020 podcast, Musk expressed, “China is great. People there… a lot of hard-working, smart people, while I see in America more and more complacent.”

Du Lam (According to BI, WSJ)