Elon Musk holds an enormous effect in the fresh Trump presidency.
The richest man in the world has essentially unrestricted political power by cutting and redesigning the federal government as he sees fit as head of his Department of Government Productivity, or DOGE. And it has fast become apparent that he has a strong opinion of problems beyond that quick.
On one matter, while, Musk stands significantly apart from others in the circle of advisers and consultants around Trump: China. Musk is a stunning outlier in contrast to the numerous hawks calling for a tough-line policy toward China in the new Trump cupboard.
As an expert on China-US ties who has monitored Musk’s opinions on China, I don’t consider his long record of espousing pro-Chinese attitude surprising, given that he has sought throughout to get a firm hold in the country.
Given Musk’s position in the Trump presidency at a time when one of America’s biggest challenges is how to maintain its relationship with Beijing, those dilemmas are for attention.
Musk’s excursion to the East
For decades, Musk has had important business interests in China, with Tesla’s Shanghai shop, Tesla Giga Shanghai, playing a vital part in the company’s global businesses.
Importantly, Tesla was the first international manufacturer to be given the right to conduct business in China without a local partner as a result of a change in ownership rules. With the assistance of US$ 1.4 billion in funding from Chinese state-owned businesses, which were granted at suitable interest rates, the Shanghai stock was constructed.
Tesla received a lower corporate tax rate of 15 %, or 10 percentage points lower than the standard rate, between 2019 and 2023 from the Shanghai government.
The cost benefits of producing in Shanghai, which include lower manufacturing and labor costs, have more cemented Tesla’s rely on the Chinese business.
Given that Musk’s financial position is generally based on Tesla property, his financial position is significantly dependent on the bank’s fortunes in China, which may make any possible breakaway from the nation both financially and carefully difficult.
Tesla’s continuing investment in China underscores this interdependence. On February 11, 2025, the company opened its next factory in Shanghai— a$ 200 million herb that is set to make 10, 000 megapack batteries periodically. It’s the bank’s second megapack power shop outside the US..
This funding deepens Tesla’s presence in China amid a fresh wave of US-China trade tensions. China responded to Beijing’s retribution with tariffs on British fuel, liquefied natural gas, agricultural products, and crude oil on February 1, when the Trump presidency imposed a 10 % tax on Chinese exports.
A China lover
How much of Musk’s economic ties to China may actually have an impact on the Trump administration’s plan toward Beijing is still a mystery. However, Musk’s longer background of pro-China notes suggests the way the management should go.
During his visit to Beijing in April 2024, Musk praised the land, noting moreover:” I also have a lot of fans in China– also, the experience is mutual”.
His admiration may be influenced in part by his opinions of Chinese business and labor practices. In keeping with Musk’s criticism of American workers as lazy and facing US labor law disputes, while also applauding Chinese workers for “burning the 3 am oil” in a labor-heavy labor environment.
Musk has also praised China’s infrastructure and high-speed rail system in numerous posts on the social media platform X, which he owns, praised its space program, praised its leadership in global green energy initiatives, and urged his followers to visit the nation.
Despite the assertions of a sizable portion of the West that reducing US dependence on China is necessary in light of rising geopolitical tensions, Musk has also opposed US efforts to decouple from China. He has also described the nations ‘ economies as” conjoined twins.”
Musk has compared Taiwan to Hawaii, arguing that it is a fundamental part of China, and that the US Pacific Fleet has used force to thwart reunification of mainland China. This is the most dangerous flashpoint in US-China relations.
Further, Musk suggested that China could allow Taiwan to become a special administrative zone in the same way that Hong Kong would.
His remarks were shared and welcomed by China’s then-ambassador to the US, who, in a post on X, emphasized China’s so-called peaceful unification strategy and advocated for the “one country, two systems” model.
Trump’s back-channel envoy?
The big question going forward is how Musk’s financial stakes in, and stated admiration for, China will translate into attempts to influence the US administration’s China policy, particularly given Musk’s unconventional advisory role and the strong faction of anti-China hawks in Trumpworld.
Given Musk’s policy toward China, it’s difficult to see how he doesn’t try to influence the president to encourage a little more sanity in relations with Beijing.
If such counsel were heeded, it’s easy to envision Musk leveraging his deep ties to China, particularly his close personal relationship with China’s current second-ranking official, Premier Li Qiang, who was the Shanghai party chief when Tesla’s factory was built. In this scenario, Donald Trump might turn to Musk as a diplomatic backchannel to ease US-China tensions and promote bilateral cooperation when necessary.
To this point, it was, perhaps, telling that it was Musk who met with China President Xi Jinping’s envoy to Trump’s inauguration, Vice President Han Zheng, on the eve of the event.
However, it’s not at all certain whether Trump wants Musk to play that diplomatic role or whether other voices won’t win in favor of Beijing. In his first term, Trump launched an unprecedented trade war and tech blockade against China, fundamentally changing US-China relations and urging the US to adopt a “bipartisan consensus” to combat Beijing, which has existed for some time.
Trump’s tariff moves and second-term picks for key positions in trade and commerce, such as Jamieson Greer and Peter Navarro, all point to a strong commitment to decoupling from China.
Furthermore, Musk’s business interests and personal wealth tied to China could leave him vulnerable to Chinese influence. China could use Musk’s reliance on the Chinese market as a bargaining chip to pressure Trump into making concessions on issues of significant strategic importance to Beijing by tapping into his close ties with Trump.
China has a history of coercing foreign businesses into making compromises on matters important to its own national interests. For instance, Apple removed virtual private network apps from its app store in China at the government’s request.
Tesla could face comparable pressure if Beijing uses Musk as a cudgel to influence policy in the Trump administration in the future. Notably, as the head of DOGE, with access to sensitive data from multiple agencies, Musk could find himself caught between US security scrutiny and China’s strategic targeting.
It’s possible that Musk’s pro-China sentiments will turn into attempts to influence government policy if he maintains the influence he currently has with Trump. Even if this turns out to be the case, whether those efforts succeed will depend on the president and his other advisers, many of whom are pursuing an aggressive front against Beijing and are likely to see Musk as a hinder rather than ally in the fight to come.
Linggong Kong is a PhD Student at Auburn University.
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