Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
Live Now : Nifty Banker 3.0 | India's First Retail Index Traders Online Conference.
Budget 2023
Budget 2023
you are here: HomeNewsBusiness

Musk’s ties to China could create headaches for Twitter

With his deal to take over Twitter, Musk’s ties to China are about to get even more fraught.

April 30, 2022 / 01:39 PM IST
Elon Musk (Image: AFP)

Elon Musk (Image: AFP)

When Elon Musk opened a Tesla factory in Shanghai in 2019, the Chinese government welcomed him with billions of dollars’ worth of cheap land, loans, tax breaks and subsidies. “I really think China is the future,” Musk cheered.

Tesla’s road since then has been lucrative, with a quarter of the company’s revenue in 2021 coming from China, but not without problems. The firm faced a consumer and regulatory revolt in China last year over manufacturing flaws. With his deal to take over Twitter, Musk’s ties to China are about to get even more fraught.

Like all foreign investors in China, he operates Tesla at the pleasure of the Chinese authorities, who have shown a willingness to influence or punish companies that cross political red lines. Even Apple, the world’s most valuable company, has given in to Chinese demands, including censoring its App Store.

Musk’s extensive investments in China could be at risk if Twitter upsets the Communist Party state, which has banned the platform at home but used it extensively to push Beijing’s foreign policy around the globe — often with false or misleading information.