By David Shepardson
WASHINGTON (Reuters) -The highest Democrat on the Home of Representatives Appropriations Committee mentioned 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 mentioned in a letter that Musk, CEO of electrical automotive maker Tesla (NASDAQ:), might have upended the federal government funding course of to take away a provision that may regulate U.S. investments in China given his “in depth investments in China in key sectors and his private ties with Chinese language Communist Social gathering management, and calls into query the true cause for Musk’s opposition to the unique funding deal.”
Tesla didn’t instantly reply to a request for remark. Musk posted numerous vital posts about DeLauro on X on Friday together with one which mentioned she “must be expelled from Congress!”
President-elect Donald Trump has named Musk, a billionaire, as co-head of a undertaking 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 Group Social gathering have solely grown over the previous couple of years with Tesla’s Shanghai plant producing about 50 p.c of Tesla’s world vehicle output,” DeLauro wrote.
Almost 1 / 4 of Tesla’s world income in 2023 drew from gross sales of Chinese language-made autos from the Shanghai manufacturing facility, DeLauro mentioned, including that Tesla broke floor on a $200 million manufacturing facility in China to fabricate massive batteries vital to its electrical automobile provide chain.
She added that proponents of regulating U.S. funding in China “have advocated for the inclusion of huge 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 would threaten U.S. nationwide safety.
On the Home flooring, DeLauro vowed to proceed preventing for the provisions. “That is one thing that merely should be finished to safeguard our provide chains and our vital capabilities,” she mentioned including Musk had “bullied Republicans into going again on their phrases.”
