Elon Musk could be the bridge between the U.S. and China but it’s unclear which country will benefit the most

Elon Musk’s relationship with China is crucial to the success of Tesla. Tesla’s Gigafactory in Shanghai, which produces about half of the company’s global output, has turned China into one of Tesla’s most important markets. In 2024, Tesla sold over 657,000 vehicles in China, making up more than a third of the company’s global sales. Additionally, the $200 million Megapack battery plant, which began operations in early 2025, further solidifies China’s role in Tesla’s future. These facilities have given Tesla an unparalleled foothold in the world’s largest EV market, allowing the company to export cars across Asia and Europe, though not yet to the U.S.

Musk’s success in China also benefits from the country’s fast-track approach to business and manufacturing. What takes months to accomplish in Western countries can be done in China at breakneck speed. For example, the Gigafactory was operational in just under a year after breaking ground — an impressive feat in any industry. This rapid expansion and production scale are fundamental to Musk’s continued dominance in the global electric vehicle market, making China an indispensable player in his business strategy.


While Musk’s businesses flourish in China, his influence in U.S. politics has also grown significantly. As a senior adviser during the Trump administration, Musk used his connections to shape policies that align with his interests, such as advocating for government efficiency measures and tax incentives for the tech industry. Musk’s public persona in the U.S. is one of a disruptor, challenging governmental norms and regulations, which fits well with his role in Trump’s circles.

However, Musk’s dual loyalty — as a businessman thriving in China while having substantial sway in U.S. politics — raises concerns. Critics argue that his ties to China, a country the U.S. considers its primary geopolitical competitor, create potential conflicts of interest. Musk's public support for Chinese policies, such as his ambiguous stance on Taiwan, has further complicated matters. His comments on Taiwan, a self-governing democratic island that China claims as its territory, were met with approval in Beijing but outrage in Taiwan and the U.S. This delicate balance of maintaining favorable relations with both nations has some questioning whether Musk’s political maneuvering is more about preserving his business empire than bridging the gap between two superpowers.


China has a long history of leveraging influential foreign business figures to advance its political agenda. Musk’s visibility and success in China have made him a valuable asset, though not necessarily for the reasons one might expect. While Musk is admired in China as an innovator and businessman, his actions and words align with China’s interests in subtle ways. For example, his initial opposition to U.S. tariffs on Chinese-made electric vehicles, followed by a softening of his stance, suggests a careful navigation of his image both in the U.S. and China.

Musk’s ability to stay out of the spotlight when it comes to criticizing China has raised eyebrows, especially as Beijing has been known to use foreign figures as “useful idiots” — a term for individuals who unwittingly or willingly assist in advancing the country’s political agenda. Despite his significant business operations in China, Musk has been notably silent on contentious issues like the Chinese government’s policies on human rights and its aggressive stance towards Taiwan. This reluctance to criticize Beijing, combined with his repeated praise for China’s economic policies, positions Musk as a valuable figure in Beijing’s global strategy. But it also leads to the question of whether Musk is a willing player in China’s game or if he’s simply making calculated decisions to protect his business interests.


While Musk’s ability to straddle the worlds of U.S. politics and Chinese business has positioned him as a potential bridge between two superpowers, there are significant risks involved. His deepening ties to China and his political influence in the U.S. are a double-edged sword. On one hand, some experts believe Musk could play a constructive role in easing tensions between the U.S. and China, helping the two countries find common ground in an era of increasing rivalry. However, others are concerned that Musk could be used by China to gain an upper hand in negotiations with the U.S., bypassing key officials who are less friendly to Chinese interests.

U.S. lawmakers, particularly those on the House select committee on China, have voiced concerns that Beijing could use Musk as a diplomatic tool to influence U.S. policy, especially regarding trade and security issues. These fears are compounded by Musk’s comments about Taiwan and his public praise for Chinese policies, which have drawn criticism from both U.S. politicians and the Taiwanese government. Should Musk’s involvement in U.S.-China relations become too overt, there’s a real risk that his business dealings — and his political influence — could backfire, either in the form of backlash in the U.S. or an abrupt shift in China’s stance toward Tesla.

Ultimately, Musk’s position as a business magnate with considerable influence in both the U.S. and China will continue to shape global geopolitics. The question remains: will his influence ultimately help bridge the divide, or is he playing both sides to his own benefit, leaving others to pick up the pieces?