Lawmakers Sound Alarm Over China’s Ties to Musk

Dear Reader,

U.S. lawmakers are raising concerns that China may try to leverage Elon Musk’s business ties to gain influence over President Trump’s policies. With Trump’s administration already pushing for tougher trade restrictions against Beijing, officials fear that Musk, one of Trump’s closest advisers, could be a key figure in backdoor negotiations with China.

At the center of these concerns is Tesla. China is Tesla’s second largest market, accounting for nearly 37% of its total sales last year, however, Tesla is facing increasing competition from domestic EV makers, and regulatory challenges that could stall growth in China. Lawmakers believe Beijing might use these obstacles as bargaining chips, granting Musk business advantages in exchange for favorable U.S. policies.

A Strategic Conduit?

Both Republican and Democratic leaders of the House Select Committee on China have voiced their concerns. They warn that Beijing sees Musk as a way to bypass hardline China hawks within the Trump administration, such as Secretary of State Marco Rubio and National Security Adviser Mike Waltz.

• John Moolenaar, the Republican chair of the committee, stated that Musk’s influence in Washington must be closely monitored to ensure that he does not become a backchannel for Chinese interest.

• Democrat Raja Krishnamoorthi echoed this sentiment, emphasizing that China views Musk as a way to avoid dealing with officials who are less friendly toward Beijing.

High Stakes for U.S.,China Relations

Musk’s role in Trump’s administration adds another layer of complexity. As head of the Department of Government Efficiency (DOGE), Musk has already reshaped federal agencies, by making drastic cuts, and policy shifts. Now, his relationship with China grows concerns from lawmakers, who fear he could have influence over critical U.S. decisions.

Trump’s recent tariffs on imports, along with stricter regulations on Chinese investments, have already escalated tensions, the biggest concern is that, if Musk plays any role in trade discussions, China could use him to weaken Trump’s current stance.

The Bigger Picture: Taiwan and National Security

Beyond trade, lawmakers worry that Trump could put key U.S. security interests on the table in negotiations with Chinese President Xi Jinping. Including America’s longstanding support for Taiwan. China has repeatedly claimed Taiwan as its territory, and any shift in U.S. policy could have major geopolitical impact.

But the White House insists Musk has no official decision making power, the reality is that his access to Trump and his deep business ties in China make him an undeniable player in these high-stakes talks.

With tensions rising and global markets reacting to U.S.-China relations, all eyes are now on Musk’s next moves.

But don’t worry, we’ll keep you posted,

Grand Crypto Insider