Elon Musk in China to meet govt. officials, causes major headache for Biden’s White House

Just hours after it was reported that Elon Musk would visit China to meet a few unnamed government officials, a private jet that is used by the Tesla CEO arrived in Beijing.

While it is anticipated that Musk will have a meeting with high-ranking Chinese officials, the main reason why Musk has paid a visit to China, is to go to Tesla’s Shanghai facility. This marks his first visit to China in three years.

A (not so) hush-hush visit
It is still unclear as to who in the Chinese government will Musk meet and for what reasons, but the speculation is causing some major concerns back at the White House.

In an official statement, China’s foreign ministry expressed its welcome to Musk, along with other business leaders, who are interested in fostering “mutually beneficial cooperation.”

Back in March, Reuters reported that Musk had intentions of visiting China and was seeking a meeting with Chinese Premier Li Qiang. Neither Tesla, Musk, nor the Chinese media have reported Musk’s arrival in Beijin

Visit comes at an odd time for Elon Musk, Tesla, as well as for US-China relations|
This visit occurs amidst a period of heightened competition for Tesla from domestically produced electric vehicles in China. Additionally, there are some uncertainties regarding the expansion plans for the Shanghai factory complex, which Musk last visited in early 2020. Interestingly, the visit comes at a time when tensions between China and the US, are at an all time high. The tech war between China and the US is also at its peak.

Following the United States, China stands as Tesla’s second-largest market, and the Shanghai plant serves as the company’s primary production facility for electric vehicles.

Of significant importance to observers of Tesla are the fulfilment of expected updates on the progress of its expansion plans at the Shanghai plant, aiming to increase annual output by 450,000 vehicles. In April, Tesla announced its intention to construct a neighbouring factory dedicated to manufacturing Megapack energy storage products.

Additionally, there remains uncertainty regarding the approval from Chinese regulators for the introduction of Tesla’s advanced driver assistance features, which are already available in other markets. These features are part of the “Full Self Driving” software that Tesla offers at a price of $15,000 per vehicle.

Musk’s SpaceX Business in China
On his flight to China, Musk took to Twitter and posted about the progress of China’s space program, which has set a goal of landing a crew on the moon before 2030. In his tweet, Musk expressed that the Chinese space program is significantly more advanced than what most people realize.

Chinese researchers have been closely monitoring Musk’s space company, SpaceX, and the military implications of its Starlink satellite network, particularly in light of Russia’s invasion of Ukraine.

In response to Starlink, state-owned Chinese companies are hastily working to launch their own low-Earth orbit communication satellites. Chinese military researchers have examined Starlink as a potentially threatening technology, as indicated by research reviewed by Reuters.