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.



US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.