House Democrat Accuses Republicans of Protecting Elon Musk’s Chinese Business Ties

The Debate Over Elon Musk’s Investments in China

WASHINGTON, Dec 21 – A heated debate has erupted in Congress, with Representative Rosa DeLauro, a top Democrat on the House Appropriations Committee, accusing Republicans of shielding Tesla CEO Elon Musk’s business interests in China. DeLauro claims that Republican lawmakers removed critical provisions that would have restricted U.S. investments in Chinese industries, raising concerns about national security and economic dependencies.

Musk’s Influence on U.S. Investment Policies

In a letter addressed to Congress, DeLauro alleged that Musk played a direct role in disrupting the government funding process. According to her, Musk’s extensive investments in China and his personal ties with Chinese Communist Party (CCP) leadership influenced the removal of provisions aimed at regulating U.S. investments in key Chinese technologies.

DeLauro’s concerns stem from Tesla’s growing operations in China, particularly its Shanghai manufacturing plant, which accounts for about 50% of Tesla’s global automobile production. In 2023, nearly a quarter of Tesla’s global revenue came from the sales of vehicles made in China, further highlighting the company’s reliance on the Chinese market.

Expansion in China Raises Red Flags

Adding to the controversy is Tesla’s recent $200 million investment in a Chinese factory dedicated to producing large batteries crucial for electric vehicle supply chains. This development has drawn criticism from lawmakers and industry experts advocating for stricter investment screening.

DeLauro emphasized the importance of including large battery manufacturing in outbound investment regulations, as these technologies are vital to both economic security and defense capabilities. “Musk’s growing investments in China raise serious questions about supply chain vulnerabilities and national security risks,” she stated.

Musk’s Response: A Social Media War

Musk, known for his candid social media presence, responded to DeLauro’s accusations with a series of critical posts on X (formerly Twitter). In one post, he called for her expulsion from Congress, fueling a political firestorm.

The billionaire CEO has been vocal in his opposition to the government funding bill, which initially included the Chinese investment restrictions. His criticism has amplified divisions among lawmakers, with some accusing Musk of leveraging his influence to shape U.S. policies in his favor.

The National Security Perspective

DeLauro’s letter also highlighted the broader implications of Musk’s investments in China. She warned that without stringent regulations, U.S. investors could inadvertently support sectors that pose risks to national security. In October, the Treasury Department finalized rules limiting investments in Chinese artificial intelligence and other advanced technology sectors, but DeLauro argues these measures do not go far enough.

Advocates for stronger regulations have consistently pushed for the inclusion of battery manufacturing in the list of restricted sectors. They argue that critical technologies tied to energy storage and electric vehicles should not be overlooked, given their strategic importance.

The Path Forward

On the House floor, DeLauro vowed to continue fighting for tighter investment restrictions. She accused Musk of “bullying” Republicans into reversing their stance on the funding bill, undermining efforts to protect U.S. interests.

“This is not just about one company or one individual,” DeLauro stated. “It’s about safeguarding our supply chains and ensuring our critical capabilities remain secure.”

As the debate continues, the controversy underscores the challenges of balancing corporate interests with national security. Musk’s ties with China and his influence over lawmakers have brought the issue of U.S.-China economic relations into sharp focus, prompting calls for greater oversight and accountability.