No American business leader has more visibly and lavishly supported President-elect Donald J. Trump than Elon Musk — and few if any have a more complex relationship with China, a country that Mr. Trump has vowed to confront with higher tariffs and other measures.
Mr. Musk has a lot on the line. His best-known company, the electric vehicle maker Tesla, makes half its cars in China. Tesla sells more cars in China than anywhere except the United States, and his local competition is getting stronger. Chinese regulators have not yet allowed Tesla to offer its latest assisted-driving and self-driving car technology, while allowing Chinese automakers to race ahead with similar systems.
Mr. Musk has personally appealed to China’s premier, Li Qiang, for permission to proceed with what Tesla calls Full Self-Driving as the company’s market share in China has dwindled. Some experts have suggested that Beijing may be able to turn Mr. Musk into an influential ally in trying to persuade Mr. Trump to take a more conciliatory approach on trade.
“When Chinese leaders have an important message to convey to President Trump, Elon Musk would clearly be the best conduit,” said Michael Dunne, a longtime China automotive consultant now based in San Diego.
Competition from China is getting tougher.
Many of Mr. Musk’s other companies, including his ventures in solar energy and large batteries, face formidable competition from Chinese businesses. Some of his businesses might benefit from a decoupling of the Chinese and American economies. Steep tariffs, initially imposed by Mr. Trump in his first term and increased by President Biden, have stopped a push by Chinese automakers into the American market.