Elon Musk has signed a letter pledging Tesla’s commitment to China’s ‘core socialist values’ as he continues his electric vehicle operations in the country.
Chinese authorities previously demanded that Musk, 52, and Tesla change their ways after the company, along with other EV firms, slashed their prices in a bid to remove smaller competitors in the industry.
The joint letter he signed used language that is popular with the communist country’s president, Xi Jinping – and is said to signal a truce among the top manufacturers.
Tesla made the promise to compete fairly in the country’s car market at the China Auto Forum in Shanghai on Thursday.
Musk also virtually attended a Chinese government-backed conference, telling the audience: ‘I admire the Chinese people’s wisdom and determination. As long as the Chinese people decide to do well in one thing, they will, including in AI.’
Chinese authorities previously demanded that Musk, 52, and Tesla change their ways after the company, along with other EV firms, slashed their prices in a bid to remove smaller competitors in the industry
Elon Musk (center) poses for a group photo at the Shanghai Gigafactory of the US electric vehicle maker in Shanghai, China, on June 1, 2023
Elon Musk’s Tesla was the only foreign company in the lineup of 15 other automakers to sign the letter.
Part of Musk’s pledge was a promise to support China’s ‘core socialist values’ and bear ‘the heavy responsibility of maintaining steady growth.’
The automakers also agreed not to ‘exaggerate or use false publicity and disrupt fair competition with abnormal pricing,’ according to Bloomberg.
China accounts for one third of Tesla’s annual sales, reports the FT.
The communist country is Tesla’s second-largest market after the U.S. and the Shanghai plant is the electric car maker’s largest production hub.
Yaqiu Wang, senior China researcher with Human Rights Watch, criticized Musk’s moves, telling the FT: ‘Failing to comply with ‘core socialist values’ has been frequently used by authorities to punish speeches that are critical of the Chinese government.’
Musk also virtually attended a Chinese government-backed conference (pictured) telling the audience: ‘I admire the Chinese people’s wisdom and determination. As long as the Chinese people decide to do well in one thing, they will, including in AI’
Elon Musk walks next to Tesla’s Senior Vice President Tom Zhu and Vice President Grace Tao as he leaves a hotel in Beijing, China May 31, 2023
Tesla CEO Elon Musk shaking hands with China’s Foreign Minister Qin Gang during a meeting in Beijing, China, 30 May 2023
General secretary of the Communist Party of China, Xi Jinping
Last month, Musk traveled to China, where Twitter is banned, and met with ministers in the country.
He also met with Robin Zeng, the founder and chair of CATL, the world’s biggest maker of EV batteries.
In May, Musk met China’s foreign minister Qin Gang in Beijing.
Qin told Musk China was ‘committed to creating a better market-oriented, rule-of-law-based and internationalized business environment’ for foreign enterprises, according to a statement at the time.
Musk said in response ‘Tesla opposes “decoupling and breaking chains”, and is willing to continue to expand its business in China’, according to the ministry’s readout.
It was Musk’s first visit to China since the start of the Covid-19 pandemic.
According to a ministry statement, in their meeting Qin told Musk: ‘We need to keep the steering wheel in the right direction of mutual respect, peaceful coexistence and win-win cooperation.’
The two sides should ‘avoid “dangerous driving,” ‘ Qin said. He gave no details of steps to improve relations.
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