Musk May Join Trump Administration... China Somewhat Relieved

On the 6th (local time), as the victory of former U.S. President and Republican presidential candidate Donald Trump was confirmed, Elon Musk, CEO of Tesla who has been a staunch supporter of Trump, is expected to join the second Trump administration.

CEO Musk expressed his full support for former President Trump after Trump was shot and injured in July, and has provided both material and moral support throughout the election period. Musk created a Super PAC (Special Political Action Committee) to help the Republican Party, contributing at least $119 million (approximately 160 billion KRW), and implemented a "Trump Lottery" that selected one person daily to receive $1 million to encourage voter registration among conservative voters in battleground states.

Additionally, CEO Musk campaigned several times in Pennsylvania, including a rally with former President Trump on the 5th of last month in Butler, Pennsylvania, a key battleground state.

Former President Trump has emphasized that Musk will serve as the chairman of the "Government Efficiency Committee," responsible for eliminating unnecessary government regulations in the second Trump administration. Regarding this, Musk claimed that under a Trump re-election, the U.S. federal government budget could be reduced by at least $2 trillion (approximately 2,800 trillion KRW). The $2 trillion amount corresponds to about one-third of the current U.S. federal government expenditure.

After voting the previous day, Musk immediately flew to the Mar-a-Lago resort in Florida, where former President Trump was, and joined the vote-counting party watching the election broadcast with Trump, his family, and major donors.

In his victory speech early that morning before supporters, former President Trump gave special mention to Musk, responding to his enthusiastic support. CEO Musk congratulated his victory on his X account, saying, "Tonight, the American people have clearly given Donald Trump a mandate for change. The future will be tremendous."

Meanwhile, if CEO Musk joins the second Trump administration, China, which is expected to face high tariffs under "Trump-style" policies, may breathe a sigh of relief.

The Wall Street Journal (WSJ) reported last month that since Tesla has its largest overseas factory in China, former President Trump, mindful of his relationship with Musk, would find it difficult to impose strong tariffs on China. As a result, the Chinese government is positively evaluating the close relationship between former President Trump and CEO Musk. CEO Musk, who is heavily dependent on Chinese business, has played a role in easing tensions between the U.S. and China whenever conflicts escalate.