Home Democrat says Republicans are defending Elon Musk’s Chinese language investments By Reuters

By David Shepardson

WASHINGTON (Reuters) – The highest Democrat on the Home Appropriations Committee stated on Friday that congressional Republicans have been defending Elon Musk’s Chinese language investments by eradicating provisions proscribing U.S. investments.

Rep. Rosa DeLauro stated in a letter that Musk, CEO of electrical automobile maker Tesla (NASDAQ:), may have upended the federal government’s funding course of to take away a provision that will regulate U.S. investments in China given its “vital investments in China in key sectors and his private ties to Chinese language Communist Social gathering leaders and calls into query the true cause for Musk’s opposition to the unique funding deal.

Tesla didn’t instantly reply to a request for remark. Musk posted quite a lot of messages essential of DeLauro on X on Friday, together with one saying she “must be kicked out of Congress!”

President-elect Donald Trump has named Musk, a billionaire, co-leader of a challenge to chop authorities prices. Musk helped lead on-line opposition to a authorities funding invoice that will have included Chinese language restrictions on investments.

“Musk’s investments in China and his ties to the Chinese language Neighborhood Social gathering have solely grown in recent times, with Tesla’s Shanghai manufacturing facility producing roughly 50% of Tesla’s international car manufacturing,” wrote DeLauro.

Almost 1 / 4 of Tesla’s international income in 2023 got here from gross sales of Chinese language-made autos on the Shanghai manufacturing facility, DeLauro stated, including that Tesla broke floor on the $200 million manufacturing facility. in China to make giant batteries essential to its electrical car provide chain.

She added that proponents of regulating U.S. funding in China “have advocated for the inclusion of enormous battery manufacturing within the record of applied sciences topic to outbound funding controls.”

In October, the Treasury finalized guidelines, efficient Jan. 2, that may restrict U.S. investments in synthetic intelligence and different expertise sectors in China that might threaten U.S. nationwide safety.

Within the Home, DeLauro pledged to proceed combating for these provisions. “That is one thing that merely must be accomplished to guard our provide chains and important capabilities,” she stated, including that Musk had “bullied Republicans into going again on their phrases.”