Drive an hour outside China’s commercial capital, Shanghai, and you’ll arrive at Elon Musk’s Tesla giant factory.
It makes nearly a million Tesla car annually and produces more than half of all its cars worldwide.
But with the American president-elect Donald Trump In preparation for moving to the White House Relationship Among his best friends Elon Musk And drive ChinaThe Communist Party is in sharp focus.
Shanghai has been key to Tesla’s success, thanks in large part to the city’s former Communist Party secretary and current Chinese premier, Li Qiang.
“Chiang is the No. 2 in China,” says Bill Russo, CEO of Shanghai-based Auto Mobility Co., Ltd. “His position in Shanghai makes everything possible for Tesla.”
“In 2017, China amended its policy guidelines for the automobile industry to allow foreign companies to own their factories in China,” he added.
“Tesla signed its deal in 2018, broke ground in 2019, and began production of the Model 3 in 2020.”
The factory was opened very quickly and in record time.
In April, Musk met with Li Qiang in Beijing, and later posted on X: “I am honored to meet Premier Li Qiang. We have known each other now for many years, since the early days of Shanghai.”
Elon Musk met with Chinese Premier Li Qiang in Beijing in April 2024. Image: AP
Relations between Musk and China reach the top.
When Chinese President Xi Jinping visited the United States in November 2023, he met with Musk, who posted “May there be prosperity for all” — echoing language often used by the Chinese government.
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Inside a Tesla showroom in Shanghai. Photo: Lex Ramsay
Musk has previously addressed the controversy surrounding Taiwan’s status. Two years ago, he suggested that tensions could be eased by giving China some control over Taiwan.
This comment angered Taiwan’s leaders.
“If Musk says anything else, he could face action against Shanghai factories,” says Chinese commentator Einar Tangen, of the Taihe Institute in Beijing. “He is not going to jeopardize that. He is playing both sides to his own advantage.”
What’s in it for China?
Musk needs China, and in the coming months, China may need Musk.
He could act as a mediator of good relations between the Chinese Communist Party and Trump, in the face of a potential global trade war.
“Whether we like it or not, we live in a world where China is the dominant player in the race to an electric future,” Russo says.
Musk once pioneered electric vehicles 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
the The relationship between Musk and Trump could get volatileBut for now, Musk stands to benefit.
“Donald Trump has never had a problem making exceptions for his friends,” Tangen says.
“It suits his character, that he can grant pardons and provide favors to people and companies he chooses.”
Musk “Pioneer”
Musk is seen as a pioneer in China and is highly talked about by most people.
“Tesla has really influenced the entire industry here,” says Benton Tang, strolling along the waterfront area of the Bund in Shanghai.
“It pushed people to develop and improve quality, design and especially price.”
Chinese car manufacturers like BYD provide stiff competition to Tesla. Photo: Lex Ramsay
Interest in Musk’s family has also gripped China’s online community.
His mother, May Musk, frequently visits the country, where she has a large social media following as a well-known fashion icon of old age and endorses several Chinese products including a mattress brand.
Her book A Woman Making a Plan has been translated into Chinese and is a bestseller here.
My catch. Photo: Reuters
On the other hand, as the countdown to Trump’s inauguration gathers pace, the spotlight is on the president-elect’s coterie of advisors.
And in the center of the glow is Elon Musk.
China is waiting to see what this will mean for them.