Musk tours China amidst electric vehicle showdown at Beijing auto show

Tesla CEO Elon Musk recently met with Chinese Premier Li Qiang in Beijing, coinciding with the Beijing auto show where Chinese car manufacturers are showcasing their latest electric vehicles. During the meeting, which was covered by China’s state broadcaster CCTV, Premier Li expressed his hope that the U.S. would enhance “win-win” cooperation with China, highlighting Tesla’s successful operations in the country as a prime example of such collaboration.

This interaction comes at a time when China is actively seeking to draw foreign investment to rejuvenate its slowing economy, and Musk’s presence contrasts with the more confrontational tone from U.S. officials, exemplified by Secretary of State Antony Blinken’s recent visit.

While it remains uncertain if Musk will attend the auto show, the event features numerous Chinese companies unveiling competitive electric vehicles, some of which directly compete with Tesla on price.

According to an earlier report by CCTV, Musk’s visit was at the invitation of the China Council for the Promotion of International Trade. He met with its president, Ren Hongbin, to discuss further cooperation among other matters.

Tesla, which has a significant manufacturing presence in Shanghai catering to the domestic and export markets, recently reduced its prices in China. The price cuts saw the Model 3 reduced to 231,900 yuan ($32,700) and the Model Y to 249,900 yuan ($35,200), following similar price reductions in the U.S.

Meanwhile, the European Union has initiated an investigation into Chinese subsidies for the electric vehicle industry, which could lead to tariffs on EVs manufactured in China, including those made by Tesla. These subsidies have significantly influenced the Chinese auto market, with electric vehicles accounting for about a quarter of new car sales last year.

As the Chinese market continues to grow, international carmakers like Volkswagen and Nissan are accelerating their development of new EV models to maintain or increase their market share in the world’s largest automobile market.