US-China Tensions Not 'Much Of A Risk' To Tesla's Beijing Business: VP

A top Tesla executive insists that the increasing geopolitical tensions between the U.S. and China will not threaten the company's business in the Asian country.

While speaking at the Tesla Investor Day in Austin, Texas, Wednesday, Tom Zhu, Tesla's vice president of global products and manufacturing, said he is "not too concerned" about the carmaker's market share in China, noting that it is still growing strongly.

"We create a lot of jobs in the local community and for our suppliers, and we contribute a lot to the local economy," Zhu said when asked whether geopolitical uncertainties will affect Tesla's position in China, the South China Morning Post reported.

"I think as long as we're needed in this country, I don't see there is much of a risk of that," he added.

China is Tesla's second-largest market, accounting for more than 50% of the company's global sales in 2022.

While Tesla CEO Elon Musk is outspoken regarding the U.S. government's policies, he has been largely quiet regarding issues that paint China badly.

In October 2022, Musk sparked controversy after suggesting that handing over some control of Taiwan to Beijing would resolve their long-standing cross-strait conflict.

"My recommendation ... would be to figure out a special administrative zone for Taiwan that is reasonably palatable, probably won't make everyone happy," Musk said in an interview with the Financial Times.

An unnamed senior Taiwanese official castigated the billionaire, telling Reuters that "Musk needs to find a clear-headed political adviser."

But Qin Gang, China's ambassador to the U.S., welcomed Musk's remarks, tweeting that the "one country, two systems" was the best approach for peaceful reunification.

The Tesla CEO also praised China's government in a March 2021 interview with the Chinese state-run broadcaster China Central Television, saying that it would "become the biggest economy in the world."

Later that December, Tesla announced that it had opened a showroom in the Chinese region of Xinjiang, where human rights advocates have accused the Chinese government of imprisoning more than 1 million Uyghurs and other ethnic minorities, NBC News reported.

In December 2022, Musk, who is also the CEO of Twitter, was sent a letter by House Democrats requesting that he provide information about the reported suppression of the news of protests in China on the social media platform.

Musk's business ties with other countries, including China, have also been scrutinized by officials.

President Joe Biden said during a November 2022 White House press conference that Musk's technical relationships with other countries are "worthy of being looked at."

New Jersey Democratic Rep. Bill Pascrell Jr. criticized Tesla's investments in China, saying the company operates "in the hotbed of human rights violations."