Elon Musk’s China ties ‘a profound threat’ to US national security: senator

The SpaceX and Tesla CEO’s business interests could be exploited by Beijing, according to testimony at cybersecurity hearing

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Elon Musk’s electric vehicle company Tesla makes half of its cars in China, which also accounts for one-third of its sales. Photo: Aly Song

Published: 11:52am, 20 Nov 2024Updated: 1:16am, 21 Nov 2024

Elon Musk’s involvement in the incoming Donald Trump administration is drawing scrutiny over possible conflicts of interests, with a senator warning that the Tesla and SpaceX CEO’s business ties with China could jeopardise US national security.

“I think it is beyond dangerous. I think it is a profound threat to our national security that Mr Musk and SpaceX are in this position,” said Richard Blumenthal, chairman of the Senate judiciary subcommittee on privacy, technology and the law.

Trump, a Republican, has said that Musk will co-lead a government efficiency commission aimed at overseeing changes to regulations as well as potentially massive cuts to federal agencies.

Tesla manufactures half of its vehicles in China, which also accounts for one-third of its sales, while the US Defence Department and other government agencies are increasingly reliant on SpaceX.

Musk’s close business ties with China and some of its most senior officials, including Premier Li Qiang, have prompted reports that he could be considered by Beijing as a backchannel to Trump, especially in the early days of the transition period.

Speaking at a hearing on Tuesday into US tech companies and their relationships with China, Blumenthal – a Democratic senator from Connecticut since 2011 – said that Musk’s ties with Beijing could be exploited.