By David Shepardson
WASHINGTON (Reuters) – The top Democrat on the House Appropriations Committee said on Friday that Republicans in Congress were protecting Elon Musk's Chinese investments by eliminating provisions restricting U.S. investments.
Rep. Rosa DeLauro said in a letter that Musk, CEO of electric car maker Tesla (NASDAQ:), may have altered the government's funding process to eliminate a provision that would regulate U.S. investments in China given his “extensive investments in China in key sectors and his personal ties to the leadership of the Chinese Communist Party, and calls into question the real reason for Musk's opposition to the original financing agreement.”
Tesla did not immediately respond to a request for comment. Musk published a series of critical posts about DeLauro on x on Friday, including one that said she “needs to be expelled from Congress!”
President-elect Donald Trump named billionaire Musk as co-director of a project to reduce government costs. Musk helped lead online opposition to a government funding bill that would have included restrictions on Chinese investment.
“Musk's investments in China and his ties to the Chinese Community Party have only grown in recent years and Tesla's Shanghai plant produces about 50 percent of Tesla's global car production,” DeLauro wrote.
Nearly a quarter of Tesla's global revenue in 2023 came from sales of Chinese-made vehicles at the Shanghai factory, DeLauro said, adding that Tesla broke ground on a $200 million factory in China to make batteries. great fundamentals for your electric vehicle supply chain.
He added that proponents of regulating U.S. investment in China “have advocated for the inclusion of large battery manufacturing in the list of technologies subject to foreign investment controls.”
<img src="https://technicalterrence.com/wp-content/uploads/2024/12/House-Democrat-says-Republicans-are-protecting-Elon-Musk39s-Chinese-investments.jpg" title="© Reuters. FILE PHOTO: Tesla CEO and x owner Elon Musk sits as US President-elect Donald Trump meets with House Republicans on Capitol Hill in Washington, US, on the 13th November 2024. REUTERS/Brian Snyder/File Photo” alt=”© Reuters. FILE PHOTO: Tesla CEO and x owner Elon Musk sits as US President-elect Donald Trump meets with House Republicans on Capitol Hill in Washington, US, on the 13th November 2024. REUTERS/Brian Snyder/File Photo” rel=”external-image”/>
In October, the Treasury finalized rules set to take effect on Jan. 2 that will limit U.S. investments in artificial intelligence and other technology sectors in China that could threaten U.S. national security.
In the House, DeLauro vowed to continue fighting for the provisions. “This is something that simply must be done to safeguard our supply chains and our critical capabilities,” he said, adding that Musk had “bullied Republicans into going back on his words.”
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