Experts warn that Elon Musk’s deep ties with China could put his budding relationship with Donald Trump to the test, possibly derailing his newly appointed role in the President-elect’s cabinet. Despite being one of MAGA’s top campaign donors and a vocal supporter since the July assassination attempt on Trump, the tech giant’s business ventures in China, including Tesla’s massive “gigafactory,” could complicate matters.
All eyes are now on whether Musk could serve as a bridge—or a breaking point—in the delicate balance between Washington and Beijing.
China could break Trump and Musk friendship, experts believe
The Tesla owner who was recently appointed to oversee the Department of Government Efficiency in the incoming Trump administration, has been actively engaging with high-ranking Chinese officials. Musk has often opposed tough economic policies on China, a stance that could create a potential rift with Trump, who made headlines during his campaign for his plans to increase tariffs. “Trump and Musk could fall out because Musk ends up opposing tough economic policies on China,” Asia Society Policy Institute member Neil Thomas told Newsweek.
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Trump views tariffs as a crucial tool for addressing the U.S.’s trade imbalance, particularly with China. He has emphasised that tariffs are essential to tackle the $800 billion trade deficit the U.S. faces globally, with China accounting for a major portion of that.
“We have, right now, an $800 billion trade deficit with the world. So think of that. So let’s say we have 500 to 375, but let’s say we have 500 with China, but we have 800 total with the world,” Trump said in 2018. That would mean that China is more than half. So we’re going to get it taken care of. And, frankly, it’s going to make us a much stronger, much richer nation,” he added according to Newsweek.
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Laura Smith, a presidential historian at Oxford University, thinks Musk’s pick might show how Trump doesn’t have a solid plan for dealing with China, which could make their relationship worse. “It remains true that Trump is no policy wonk, but he may have more disagreements during his second term based on policy with his increased exposure to different issues,” the expert told Newsweek.
Elon Musk’s role between US and China
Elon Musk has taken a cautious approach regarding the U.S.-China relationship, often refraining from criticizing the Chinese Communist Party. The Space X CEO has earlier expressed admiration for China’s growth and voiced concerns about the increasing tensions between the two nations.
He has also criticised the Biden government’s tariffs on Chinese goods, stating that such policies hinder free market exchange. “Neither Tesla nor I asked for these tariffs,” he said during a conference in Paris. “Things that inhibit freedom of exchange or distort the market are not good,” he added.”Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favor of no tariffs.”
However, despite the potential for tension between Musk and Trump, both Smith and Thomas believe Musk could play a big role in shaping Trump’s China policies. Smith suggests that Trump would likely want to maintain a strong relationship with Musk, given his influence and resources. Thomas adds that Trump is “a business owner who respects Musk’s success.” He continued, “their close relationship could lead the incoming president to become more targeted in his China policy and fall out with the security hawks on his foreign policy team.”
