"Trying to Access Confidential Info" Musk Too Close with China?… US Political Circles 'Concerned'

Elon Musk Tesla CEO
Photo by Reuters Yonhap News

[Asia Economy Reporter Jeong Hyunjin] The expansion of Tesla and SpaceX's business in China has raised concerns in the U.S. political sphere about CEO Elon Musk's close ties with China.

According to the Wall Street Journal (WSJ) on the 20th (local time), U.S. Republican Congressman Chris Stewart has requested that officials from security-related agencies, including the National Reconnaissance Office (NRO), provide classified briefings to Congress to understand the direct and indirect relationships between SpaceX and the Chinese government. Congressman Stewart said, "I am a fan of Elon Musk and SpaceX, but anyone would be concerned if there are financial ties with China," adding, "Congress cannot view this positively." He also expressed a desire to determine whether companies with ties to China have invested in SpaceX.

These concerns stem from the increasing connections between Tesla and SpaceX's businesses and China. Tesla is expanding electric vehicle sales in the Chinese market and has received support from the Chinese Communist Party and the Xi Jinping government, including low-interest loans. In particular, Tesla received various incentives during the construction of its Shanghai factory. Between 2018 and 2019, Tesla faced financial difficulties due to insufficient production at its U.S. factory and obtained loans from Chinese banks between 2019 and 2020.

Additionally, Chinese company Tencent disclosed in 2017 that it had purchased a 5% stake in Tesla. At that time, CEO Musk described this stake purchase as more than a simple investment. In 2018, Tencent revealed that its stake in Tesla had slightly decreased to 4.97%, but no further disclosures on the shareholding ratio have been made since then.

As companies operated by CEO Musk deepen their ties with China, concerns about potential leaks of classified information have grown within the U.S. political arena. In December last year, Senator Marco Rubio, the top Republican on the Senate Intelligence Committee, introduced legislation aimed at blocking China's access to space technology through third parties. Although Senator Rubio has received substantial donations from Musk, he believes that American companies doing business in China, including Tesla, will ultimately face pressure from the Communist Party, prompting him to propose such legislation.

Gina Raimondo, U.S. Secretary of Commerce, stated, "It is clear that China has engaged in coercive and anti-competitive practices, including stealing IP, technology, and know-how," adding, "Anyone doing business in China must be extremely cautious and avoid any actions that could jeopardize our national security."

This content was produced with the assistance of AI translation services.