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

By David Shepardson

WASHINGTON (Reuters) -The highest Democrat on the Home of Representatives Appropriations Committee stated on Friday that Republicans in Congress have been defending Elon Musk’s Chinese language investments by scrapping provisions limiting U.S. investments.

Consultant Rosa DeLauro stated in a letter that Musk, CEO of electrical automotive maker Tesla (NASDAQ:TSLA), might have upended the federal government funding course of to take away a provision that may regulate U.S. investments in China given his “intensive investments in China in key sectors and his private ties with Chinese language Communist Occasion management, and calls into query the actual purpose for Musk’s opposition to the unique funding deal.”

Tesla didn’t instantly reply to a request for remark. Musk posted numerous crucial posts about DeLauro on X on Friday together with one which stated she “must be expelled from Congress!”

President-elect Donald Trump has named Musk, a billionaire, as co-head of a venture to chop authorities prices. Musk helped lead opposition on-line to a authorities funding invoice that may have included the Chinese language funding restrictions.

“Musk’s investments in China and his ties with the Chinese language Neighborhood Occasion have solely grown over the previous few years with Tesla’s Shanghai plant producing about 50 p.c of Tesla’s international vehicle output,” DeLauro wrote.

Practically 1 / 4 of Tesla’s international income in 2023 drew from gross sales of Chinese language-made automobiles from the Shanghai manufacturing unit, DeLauro stated, including that Tesla broke floor on a $200 million manufacturing unit in China to fabricate massive batteries crucial 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 listing of applied sciences topic to outbound funding screening.”

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.

On the Home flooring, DeLauro vowed to proceed combating for the provisions. “That is one thing that merely have to be executed to safeguard our provide chains and our crucial capabilities,” she stated including Musk had “bullied Republicans into going again on their phrases.”