Drive an hour outdoors China’s industrial capital Shanghai, and you will attain Elon Musk’s Tesla gigafactory.
It manufactures nearly a million Tesla vehicles a 12 months and produces greater than half of all its vehicles worldwide.
However with US president-elect Donald Trump getting ready to maneuver into the White Home, the connection between his greatest buddy Elon Musk and the management of China’s Communist Celebration is in sharp focus.
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Tesla’s Shanghai gigafactory. Pic: Lex Ramsay
Shanghai has been the important thing to Tesla’s success, largely because of town’s former Communist Celebration secretary, now China’s premier, Li Qiang.
Chief govt of Shanghai-based Auto Mobility Restricted, Invoice Russo, says: “Qiang is China’s number two person. His 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 deal in 2018, broke ground in 2019, and started producing the Model 3 in 2020.”
The manufacturing unit opened at breakneck communicate and in file time.
In April, Musk met Li Qiang in Beijing, later posting on X: “Honoured to meet with Premier Li Qiang. We have known each other now for many years, since early Shanghai days.”
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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 “May there be prosperity for all” – echoing the language typically 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 said anything else, he could face action against the Shanghai plants. He’s not going to endanger that. He’s playing both sides for his own advantage.”
What’s in it for China?
Musk wants China, and within the months to come back, China may have Musk.
He may act as a well-connected intermediary between the Chinese language Communist Celebration and Trump, within the face of a possible international commerce conflict.
“Like it or not, we are living in a world where China is the dominant player in the race to an electric future,” says Russo.
Musk pioneered the EV business in China, however is now struggling to compete with native automobile manufacturers like BYD and Nio.
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Elon Musk’s assist helped propel Donald Trump to a second time period within the White Home. Pic: AP
The connection between Musk and Trump may turn out to be risky, however for now Musk stands to profit.
“Donald Trump has never had a problem giving exceptions to friends,” Tangen says.
“It fits his personality, that he can grant pardons and give favours to the people and companies he chooses.”
Musk ‘the pioneer’
Musk is properly considered a pioneer in China and most of the people communicate of him extremely.
Strolling alongside the Bund waterfront space in Shanghai, Benton Tang says: “Tesla really impacted the entire industry here.
“It pushed folks to develop and enhance the standard, the design and particularly the worth.”
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Chinese language car producers like BYD present stiff competitors for Tesla. Pic: Lex Ramsay
Curiosity within the Musk household has additionally gripped China’s on-line neighborhood.
His mom, Maye Musk, steadily visits the nation, the place she has an enormous social media following as a senior-age movie star vogue icon and endorses a number of Chinese language merchandise together with a mattress model.
Her guide, A Lady Makes A Plan, has been translated into Chinese language and is a bestseller right here.
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Maye Musk. Pic: Reuters
In the meantime, because the countdown to Trump’s inauguration positive aspects 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 may imply for them.
