Tesla’s Musk Hails China’s ‘Vitality’ on Beijing Visit

Residents walk past a Tesla showroom in Beijing, Wednesday, May 31, 2023. (AP)
Residents walk past a Tesla showroom in Beijing, Wednesday, May 31, 2023. (AP)
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Tesla’s Musk Hails China’s ‘Vitality’ on Beijing Visit

Residents walk past a Tesla showroom in Beijing, Wednesday, May 31, 2023. (AP)
Residents walk past a Tesla showroom in Beijing, Wednesday, May 31, 2023. (AP)

Elon Musk praised China's "vitality and promise" on Wednesday, Beijing said, during a trip to China in which he has met multiple government officials and reportedly declared he will expand his business there.

 

The mercurial tycoon, one of the world's richest men, is on his first trip to China in over three years.

 

He met Commerce Minister Wang Wentao in Beijing on Wednesday, praising "the vitality and potential of China's development", according to a ministry readout of the meeting.

 

Musk "expressed full confidence in the China market, and was willing to continue deepening mutually beneficial cooperation".

 

He also said "China-US relations are not a zero-sum game", the readout added, and thanked China for "the support and guarantees it provided for Tesla's Shanghai factory during the Covid-19 pandemic", when it was placed under strict lockdowns.

 

Musk has extensive business interests in the country and told Foreign Minister Qin Gang on Tuesday that his firm was "willing to continue to expand its business in China", according to the foreign ministry.

 

Musk and Tesla have not released any statement themselves on the trip or responded to AFP requests for comment.

 

Chinese media reported that Tesla welcomed its CEO to Beijing on Tuesday with a 16-course dinner that included seafood, New Zealand lamb and traditional Beijing-style soybean paste noodles.

 

Musk also met Industry Minister Jin Zhuanglong in Beijing on Wednesday to discuss "the development of new energy vehicles and intelligent connected vehicles", the Ministry of Industry and Information Technology said in a readout.

 

On Wednesday evening the tycoon was seen boarding his private plane at Beijing's Capital International Airport.

 

He is next expected to visit his factory in Shanghai, Bloomberg reported, citing sources, and potentially meet with Chinese Premier Li Qiang.

 

China is the world's biggest electric vehicle market and Tesla announced in April it would build a second massive factory in Shanghai, after its Gigafactory that broke ground in 2019.

 

Deep business ties

 

In his meeting with Qin on Tuesday, Musk expressed his opposition to any economic "decoupling" between China and the United States, Beijing said.

 

"The interests of the United States and China are intertwined, like conjoined twins, who are inseparable from each other," Musk said.

 

Musk's extensive business ties to China have raised eyebrows in Washington, with President Joe Biden saying in November the executive's links to foreign countries were "worthy" of scrutiny.

 

He has also caused controversy by suggesting the self-ruled island of Taiwan should become part of China -- a stance welcomed by Chinese officials but which deeply angered Taipei.

 

Musk is one of a number of Western executives to visit China since the country ended strict Covid controls that saw it largely closed off from the world for almost three years.

 

Chinese foreign ministry spokeswoman Mao Ning said this week that Beijing welcomed visits by international executives "to better understand China and promote mutually beneficial cooperation".

 

In March, Apple CEO Tim Cook visited Beijing, saying his company enjoyed a "symbiotic" relationship with China.

 

That same month, Albert Bourla, CEO of pharmaceutical giant Pfizer, also paid a visit to the Chinese capital.



New Car Sales in Spain Surpass Million-mark, Sector Facing Tough 2025

An aerial view shows new vehicles parked at the port in Barcelona, Spain, December 7, 2024. REUTERS/Jon Nazca/File Photo
An aerial view shows new vehicles parked at the port in Barcelona, Spain, December 7, 2024. REUTERS/Jon Nazca/File Photo
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New Car Sales in Spain Surpass Million-mark, Sector Facing Tough 2025

An aerial view shows new vehicles parked at the port in Barcelona, Spain, December 7, 2024. REUTERS/Jon Nazca/File Photo
An aerial view shows new vehicles parked at the port in Barcelona, Spain, December 7, 2024. REUTERS/Jon Nazca/File Photo

New car sales in Spain surpassed the one million mark in 2024 for the first time since the COVID-19 pandemic, data showed on Thursday, but analysts and industry sources said this should not be seen as a sign of recovery in a sector facing a tough 2025.

Changing trends in car usage, high prices, uncertainty around electric vehicles (EVs) and fierce competition from Chinese brands are all expected to create challenges for the auto industry in Spain, said Felipe Munoz, an analyst at market research firm JATO Dynamics.

New car sales in 2019 reached well over 1.3 million, but then slumped to around 900,000 annually for the next four years. Though 2024's 1.02 million sales represent a 7.1% increase year-on-year, they are still far below the original trend, Reuters reported.

Last year's rise was helped by a massive 28.8% spike in year-on-year sales in December, the data showed.

Munoz said the uptick seemed transitory, as new car sales had failed to properly take off after the pandemic clobbered demand, adding: "I don't think (the Spanish car market) will ever hit those numbers again."

According to Munoz, after the semiconductor scarcity crisis, European car manufacturers focused on increasing their prices at the cost of selling fewer units - and still made record profits.

"That strategy worked perfectly for them until this year, when Chinese brands started to penetrate the market more successfully in Europe, and they realised their prices were too high in comparison," he added.

Spanish car part manufacturer Gestamp was less affected by a drop in car sales in Spain and Europe due to its geographic diversification, CFO Ignacio Mosquera said, but more had to be done to help an ailing sector that lacked a clear policy in "one of the most important industry overhauls in history".

"If there's no public-private partnership, there's uncertainty in demand and people don't know which vehicle to buy. Faced with that decision, what do they do? They extend the life of their vehicle," Mosquera said - thus reducing sales.

Echoing that sentiment, the head of Spanish car part manufacturers' association Sernauto, Jose Portilla, said more state support was needed to encourage the sale of EVs.

"If we're able to boost the recharging infrastructure, EVs become more affordable, and the subsidies are given at the time of purchase instead of one-and-a-half or two years later. This will encourage the market much more and we'll be able to redirect this situation," Portilla added.