In the Trump administration, Xi will have "a friend with influence" in Musk.

Given the billionaire's investment in China's electric vehicle (EV) business, Elon Musk's participation in Donald Trump's incoming administration is seen favorably by the Chinese government. The richest man in the world has benefited from advantages in China that other foreign investors hardly ever have access to.

China took notice when President-elect Donald Trump revealed that biotech entrepreneur Vivek Ramaswamy and billionaire Elon Musk would co-lead what he called the Department of Government Efficiency. Although the opposition referred to the new body's efforts as "dismantling government bureaucracy," Musk's impact on the Trump administration extends beyond a single agency.

After Trump won the US presidential election in 2024, the CEO of Tesla attended almost all of his meetings. Despite multiple reports indicating that Musk is in contact with Russian President Vladimir Putin, the president-elect's conversations with Ukrainian President Volodymyr Zelenskyy featured Musk jumping in on the phone.

Given the billionaire's investment in China's electric vehicle (EV) business, Musk's presence in the Trump administration is seen favorably by the nation. The richest man in the world used to have access to benefits that other foreign investors hardly ever had. For example, Tesla was granted an extraordinary concession to fully manage its local business.

Furthermore, Musk shares Chinese President Xi Jinping's perspective on some of the most delicate points of disagreement between the US and China. But things are not as easy as they appear. Some Trump supporters who are currently in his administration plan to quickly close the doors Musk creates for China to reenter the US market.

Musk's stake in the EV market in China

When Tesla's earnings were plummeting in April of this year, Musk took an unexpected trip to China. In order to get permission to introduce its driver-assistance software in the largest auto market in the world, the millionaire traveled to Beijing. He met Premier Li Qiang during his tour, who assisted the corporation in establishing what is currently its most successful facility worldwide while serving as Shanghai's Chinese Communist Party secretary.

Since then, Musk's influence in the Chinese market has grown to the point where half of Tesla's electric cars are now produced there. The billionaire had a successful dive in the Chinese pond. It was reported earlier this month that following the US Elections, Chinese equities linked to Tesla increased.

The South China early Post reports that in early trade on November 8, shares of Chinese companies thought to be Tesla's suppliers jumped by almost 20%. The spike occurred as a result of investors' wagers that the biggest EV manufacturer in the world will thrive under Donald Trump's second term in office.

Musk protested US tariffs on Chinese electric vehicles (EVs) in May, one month after his trip to China. Days after President Joe Biden tripled taxes on Chinese-imported EVs, Musk voiced his objection. The multibillionaire said via video link at a technology conference in Paris, "Neither Tesla nor I asked for these tariffs."

Musk's comments contradicted his January warning that, in the absence of trade restrictions, Chinese automakers would "demolish" foreign rivals. Actually, when they were announced, I was taken aback. Anything that stifles free trade or distorts the market is bad. Without taxes or preferential treatment, Tesla does fairly well in the Chinese market. At the time, he added, "I support no tariffs."

Therefore, with Musk's assistance, the Chinese EV sector, which suffered in the US after President Joe Biden ordered a 100% rise in tariffs on EVs from China, may receive some respite under the Trump administration. This was a response to unfair policies and was meant to preserve US jobs.

Musk's position on Taiwan could be advantageous for Xi.
The CEO of SpaceX has a reputation for often expressing opinions on a variety of geopolitical matters, such as the tensions between China and Taiwan. Musk stated in 2022 that one suggestion for Taiwan was to "figure out a special administrative zone," which was in line with Xi's plan to unite the autonomous island using a structure akin to that of Macau and Hong Kong.

Musk faced backlash on the internet last year when he reaffirmed Beijing's view of Taiwan as a "integral part of China," comparable to the US's position of Hawaii. China is concerned about the US's close connections to Taiwan under the Biden administration.

It is important to remember that Trump has already voiced doubts about US defense pledges to Taiwan, which has led to concerns that he would back out of the island as tensions with Beijing escalate. Musk's discussions with Taiwan on the implementation of Starlink abruptly ended when the CEO of SpaceX demanded a 100% stake in the business, which is currently prohibited by Taiwanese law. But according to a number of analysts, Trump is unlikely to consult Musk about the Taiwan issue.

That "hunky dory" isn't it: The existence of Trump supporters who are anti-China
It is important to remember that Musk's perspective on China differs greatly from that of other Trump supporters. The US should cut all commercial connections with China, according to a previous article in Foreign Affairs magazine by Trump's former national security adviser Robert O'Brien. In the meantime, former Secretary of State Michael Pompeo has urged the United States to acknowledge Taiwan as a country. Trump has already stated, though, that Pompeo will not be a member of his new administration.

There are several China hawks in Trump's new cabinet, even though Pompeo was ignored. Trump's Secretary of State will be Senator Marco Rubio, who has taken a strong stand against China's rise as an economic power. Fascinatingly, Rubio will be the first sitting US secretary of state to have been sanctioned by Beijing.

In the meantime, Trump's choice for US ambassador to the UN, Elise Stefanik, has likewise been a fierce opponent of Beijing. Stefanik previously stated that one of her top priorities as a congresswoman for New York was to combat the economic and national security challenges posed by the "Chinese Communist government." It will be intriguing to observe whose influence will mold Trump's perspective on China.