Drive an hour outside China’s commercial capital, Shanghai, and you’ll arrive at Elon Musk’s Tesla gigafactory.
Manufactures almost a million tesla cars a year and produces more than half of all its cars worldwide.
But with the elected president of the United States. donald trump preparing to move to the White House, the relationship between your best friend Elon Musk and the leadership of PorcelainThe Russian Communist Party is in the spotlight.
Shanghai has been the key to Tesla’s success, thanks in large part to the city’s former Communist Party secretary and now Chinese premier, Li Qiang.
Shanghai-based Auto Mobility Restricted CEO Invoice Russo says: “Qiang is the number two person in China. “Its position in Shanghai made everything possible for Tesla.”
“In 2017, China adjusted its policy guidelines for the automotive industry to allow foreign companies to own their factories in China,” he added.
“Tesla signed its agreement in 2018, began construction in 2019 and began producing the Model 3 in 2020.”
The factory opened its doors at a dizzying pace and in record time.
In April, Musk met with Li Qiang in Beijing and later posted on X: “It is an honor to meet with Premier Li Qiang. We have known each other for many years, since the early days of Shanghai.”
The ties between Musk and China go all the way to the top.
When Chinese President Xi Jinping visited the United States in November 2023, he met with Musk, who posted “Let there be prosperity for all,” echoing language often used by China’s government.
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Inside a Tesla showroom in Shanghai. Photo: Lex Ramsay
Musk has previously weighed in on the debate over Taiwan’s status. Two years ago, he suggested that tensions could be eased by giving China some control over Taiwan.
This comment infuriated Taiwan’s leaders.
Chinese commentator Einar Tangen of the Taihe Institute in Beijing says: “If Musk had said anything else, he could face action against the Shanghai plants. He’s not going to jeopardize that. “He is playing both sides for his own benefit.”
What’s in it for China?
Musk needs China, and in the coming months, China may need Musk.
He could act as a well-connected intermediary between the Chinese Communist Party and Trump, in the face of a possible international trade war.
“Whether we like it or not, we live in a world where China is the dominant player in the race toward an electric future,” says Russo.
Musk pioneered the electric vehicle industry in China, but is now struggling to compete with local car brands such as BYD and Nio.
Elon Musk’s support helped propel Donald Trump to a second term in the White House. Photo: AP
He The relationship between Musk and Trump could become volatilebut for now Musk will benefit.
“Donald Trump has never had a problem making exceptions for his friends,” Tangen says.
“It fits his personality that he can grant pardons and give favors to the people and companies he chooses.”
Musk ‘the pioneer’
Musk is well regarded as a pioneer in China and most people speak highly of him.
Walking along the Bund waterfront in Shanghai, Benton Tang says: “Tesla really impacted the entire industry here.
“This pushed people to develop and improve quality, design and, above all, price.”
Chinese vehicle manufacturers like BYD pose tough competition for Tesla. Photo: Lex Ramsay
Interest in the Musk family has also taken over China’s online community.
Her mother, Maye Musk, frequently visits the country, where she has a large social media following as an elderly celebrity fashion icon and promotes several Chinese products, including a mattress brand.
Her book, A Woman Makes a Plan, has been translated into Chinese and is a bestseller here.
Meanwhile, as the countdown to Trump’s inauguration continues, attention is intensifying on the president-elect’s circle of advisers.
In the middle of the glow is Elon Musk.
China is waiting to see what that will mean for them.
