Did Musk block the original budget deal to protect his business deals with the Chinese Communist Party?!
Even Vivek Ramaswamy called Musk a puppet of China
“The one big thing nobody is talking about: Did Elon want to shut the government down because of his business deals with China?”
That was the first line of Rep. Jim McGovern (D-Mass) multi-part statement Saturday posted on Elon Musk’s platform, X--ironically enough. A similar point was also made Friday by Rep. Rosa DeLauro (D-CT)—the ranking minority member of the House Appropriations Committee-in a detailed letter to leaders of the House and the Senate.
What was the issue the two were flagging? As Rep. McGovern wrote: “The original funding bill (that he [Musk] killed) included what’s called an “outbound investment” provision—which would limit & screen U.S. money flowing to China. That would have made it easier to keep cutting-edge AI and quantum computing tech—as well as jobs—in America. But Elon had a problem.”
DeLauro gave even more context to this provision vetting investments in China: “This outbound investment provision was agreed to after months of bipartisan, bicameral negotiations and years of advocacy from Members of Congress. It would have kept innovation and manufacturing in semiconductors, artificial intelligence (AI), quantum computing, and other cutting-edge technologies in the United States and prevented wealthy investors from continuing to offshore production and U.S. intellectual property into China – benefiting only their bottom lines and the Chinese Communist Party.”
But Musk—per these two members of Congress—led the charge to block this proposed legislation because as McGovern accurately noted, Musk’s “second-largest market is China. He’s building huge factories there. His bottom line depends on staying in China’s good graces.”
The result was that when the new budget deal was agreed upon Friday, guess what was missing? Yep, the provision that would’ve been bad for Musk’s business deals with the Chinese Communist Party—which is in essence Musk’s business partner as the NY Times detailed earlier this year in an article titled, “How Elon Musk Became ‘Kind of Pro-China.’” (Musk’s exact words.)
Rep. DeLauro explained in more detail the financial incentive behind Musk’s action to block this provision: “Musk’s car company, Tesla has poured billions of dollars into investments in China, particularly its “gigafactory” in Shanghai. The Shanghai plant is Tesla’s largest car manufacturing facility – the Chinese gigafactory produced about 50 percent of Tesla’s global automobile output over the last year.”
DeLauro continued, “And in May of this year, Tesla broke ground on a new $200 million factory to manufacture large batteries critical to its electric vehicle supply chain…Notably, proponents of regulating U.S. investment in China have advocated for the inclusion of large battery manufacturing in the list of technologies subject to outbound investment screening.” Yep, these new law could’ve impacted Musk’s new business venture per DeLauro.
Rep. McGovern also raised concerns about Musk’s future business plans involving China, explaining Musk “wants to build an AI data center there too—which could endanger U.S. security.”
Importantly, DeLauro detailed for all to see Musk’s documented personal relations with the Chinese Communist Party, noting, “Musk has ingratiated himself with Chinese Communist Party leadership.” For example, she cited Musk’s close ties with “Chinese premier Li Qiang, who helped rush the construction of Tesla’s Shanghai gigafactory.”
DeLauro concluded her letter by writing, “It is extremely alarming that House Republican leadership, at the urging of an unelected billionaire, scrapped…this critical provision to protect American jobs and critical capabilities.” Adding, “This is particularly concerning given Elon Musk’s extensive investments in China in key sectors and his personal ties with Chinese Communist Party leadership, and calls into question the real reason for Musk’s opposition to the original funding deal.”
Musk’s response to DeLauro’s letter was posting online about her, “This awful creature needs to be expelled from Congress! Ugh.”
But the corporate media has all but ignored this issue. Why wouldn’t they at least explore the role Musk played in the ultimate budget deal that removed this key provision?! After all, Musk’s history demands it. He has notoriously refused to publicly criticize the Chinese Communist Party leadership on any issue including their crackdown on free speech which entails banning Musk’s X in China. Worse, as the NY Times noted Musk “has also praised Chinese leaders and taken China’s side in geopolitical disputes, even as he rails against politicians in the United States.”
Why? As the NY Times reported, “Musk’s reliance on the Shanghai factory may give Beijing leverage over him.”
In fact, even a well-known Republican raised alarm bells about Musk’s loyalty to Beijing. Vivek Ramaswamy--who Trump tapped with Musk to co-head the newly created Department of Government Efficiency--was publicly warning in 2023 that Musk was a puppet for the Chinese Communist Party. As CNN recently reported, Ramaswamy was concerned that “Tesla is increasingly beholden to China,” adding damningly, “I have no reason to think Elon won’t jump like a circus monkey when [China’s leader] Xi Jinping calls in the hour of need.”
The GOP silence on Musk’s extensive ties to the Chinese Communist Party is beyond hypocritical given that for years Republicans have slammed China as a threat. For example, in January 2023, the House GOP created “The Select Committee on the Chinese Communist Party” designed to address the “threat posed by the Chinese Communist Party and develop a plan of action to defend the American people, our economy, and our values.”
Earlier this year, the House GOP led the charge to ban Tik Tok from having access to the United States--which was signed into law and goes into effect Jan. 19, 2025 unless the Chinese company that owns the social media platform sells it to a non-Chinese company. But when it comes to Musk, the GOP doesn’t care that he has documented ties to top Chinese Communist Party officials.
Who can forgot how these same Republicans investigated Joe Biden’s family for allegedly receiving “just over $1 million indirectly from a Chinese company.” In the case of Musk, we are talking billions being made from his undisputed and documented relationship with “with Chinese Communist Party leadership.”
The Republicans being hypocritical is staple of who they are. Calling it out won’t change them because you can’t shame, the shameless.
But the corporate media’s failure to explore this issue is indefensible. Our national security is at risk. Perhaps the corporate media is as frightened with angering Musk as they are with Trump. Or maybe the wealthy oligarchs who own corporate media don’t want to go after a fellow plutocrat. In either case, it’s bad for those who oppose the wealthy ruling us like serfs.
Maybe letting unelected foreign billionaires buy the government is a bad idea.
The Republican Party used to be anti-communist. In fact, the worst insult they hurled at people they didn't like (feared) was, "He's a communist." Perhaps it's time to throw their epithet right back in their faces and call their golden-haired boy Muck a communist for cozying up to China.