Trump warns Elon Musk’s ties to China make him 'Susceptible' despite billions in federal contracts
Elon Musk’s recent visit to the Pentagon has drawn criticism, emphasizing his companies' significant ties to both the federal government and China.
Elon Musk’s visit to the Pentagon on Friday attracted criticism and spotlighted the deep connections his companies have with both the federal government and China. Musk’s rocket company, SpaceX, holds $22 billion in government contracts, while his electric vehicle company, Tesla, operates its largest factory, Gigafactory Shanghai, in China, which produced nearly half of all Tesla vehicles last year.
Musk’s visit was initially set to include a briefing on top-secret information regarding a potential war with China, but defense officials later clarified that he would instead receive an unclassified briefing, as reported by The Wall Street Journal.
Trump is concern about Musk strong ties with China
Both Defense Secretary Pete Hegseth and President Trump denied the claim that Musk was given access to classified details on the matter. In a statement from the Oval Office, Trump emphasized that Musk’s business interests in China made him “susceptible” and said he would not be shown sensitive military information.
“We don’t want to have a potential war with China, but I can tell you if we did, we’re very well-equipped to handle it, but I don’t want to show that to anybody, but certainly you wouldn’t show it to a businessman,” Trump said. “Elon has businesses in China, and he would be susceptible perhaps to that.”
Musk did not clarify the details of the meeting, responding “Why should I tell you?” when asked by a reporter. Despite the unclassified nature of the meeting, the attention surrounding Musk’s Pentagon visit has raised concerns. Senator Kirsten Gillibrand (D-N.Y.), a senior member of the Senate Armed Services Committee, criticized Musk’s presence, stating that a self-interested billionaire should not have access to such important government matters.
While it is uncertain whether any defense companies will file lawsuits over Musk’s access. Legal experts like Case Western Reserve University law professor Anat Alon-Beck believe such cases are unlikely to succeed, as access to this type of information has never been equally distributed.
Musk's connection to both the U.S. and China raises concerns about his influence and business interests. Photo: AFP
China is one of Musk's biggest markets
Musk’s companies have strong ties to China. Tesla, in particular, has operated in the country for over a decade, with Gigafactory Shanghai being its largest production site, responsible for half of Tesla’s global vehicle output. Despite challenges, China remains one of Tesla’s largest markets. Musk has also been reported to have discussed assurances with the Chinese government regarding Starlink, his satellite internet service, which the government reportedly wanted to prevent from being sold in China.
In the U.S., SpaceX is a significant government contractor, holding $22 billion in government contracts. Tesla has also benefitted from $11.4 billion in regulatory credits. Combined, Musk’s companies have received $38 billion in government contracts, loans, subsidies, and tax credits over the past 20 years.