Musk Welcomed in China After 3 Years... Meets with 3 Ministers Over Two Days

Foreign Media: "Musk Pours Flattering Greetings to China"

Elon Musk, CEO of Tesla, who visited China for the first time in over three years, met with three current Chinese ministers over two days. It appears that Musk requested support from Chinese authorities to expand the production capacity of the Shanghai Tesla factory and to introduce autonomous driving features.

According to Bloomberg and other sources on the 31st, Musk met with Wang Wentao, Minister of Commerce of China, and Jin Zhuanglong, Vice Minister of Industry and Information Technology. This followed his meeting with Qin Gang, State Councilor and Minister of Foreign Affairs of China, the previous day, making it three current ministers met within two days.

[Image source=Reuters Yonhap News]

Considering that Nicholas Burns, the U.S. Ambassador to China, met Minister Qin only after five months in office, this is seen as an unusual move, indicating that the Chinese government warmly welcomed the head of Tesla, which has a large-scale production facility in Shanghai.

The three ministers exchanged views with Musk on U.S.-China economic and trade cooperation and Tesla's business in China. The Chinese government promised the Tesla CEO a better business environment for foreign-invested enterprises. At the same time, it sent a message aimed at the Biden administration, which continues to pressure China, emphasizing the need to strengthen openness, dialogue, and cooperation.

Musk also appeared to reciprocate the hospitality in his remarks during meetings with Chinese officials. According to the Ministry of Commerce and the Ministry of Foreign Affairs, Musk told Minister Wang, "I agree that U.S.-China relations are not a zero-sum game," and told Minister Qin, "Tesla opposes decoupling and network disconnection (in supply chains)."

Foreign media reported that "Musk offered flattering greetings during his visit," pouring praise on China in meetings with the three ministers.

Musk, who visited China for the first time in three years and four months since January 2020, is reported by foreign media to plan a visit to Tesla’s Shanghai factory during this trip. Tesla produced 52% of its total output at the Shanghai factory last year. Recently, there were reports that Tesla signed a contract to build a factory producing large-capacity energy storage systems (ESS), called Megapacks, in Shanghai.

The market views Musk’s visit as highlighting China’s importance in the global electric vehicle market. Bill Russo, founder and CEO of Automobility, an automotive consulting firm headquartered in Shanghai, said, "This shows how important the Chinese market is in terms of price defense and the global system," emphasizing that Tesla needs the economies of scale provided by China to maintain price competitiveness worldwide.