Elon Musk is asking President Donald Trump’s help in challenging the seemingly one-sided China’s auto deals. Mask wants to limit foreign ownership of Chinese
Ventures and impose steep tariffs on imported cars.
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Do you think the US & China should have equal & fair rules for cars? Meaning, same import duties, ownership constraints & other factors.</p>— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/971810418128691200?ref_src=twsrc%5Etfw">March 8, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The Tesla Inc. Chief Executive took to Twitter to air his sentiments and recommendations. In a series of messages posted on the social media platform aimed at Trump, Musk specified that he was “against import duties in general, but the current rules make things very difficult. It’s like competing in an Olympic race wearing lead shoes. “
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">For example, an American car going to China pays 25% import duty, but a Chinese car coming to the US only pays 2.5%, a tenfold difference</p>— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/971811614411276288?ref_src=twsrc%5Etfw">March 8, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">I am against import duties in general, but the current rules make things very difficult. It’s like competing in an Olympic race wearing lead shoes.</p>— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/971814004887715840?ref_src=twsrc%5Etfw">March 8, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Musk’s company has been pushing hard to build cars in China but their efforts have been met by one roadblock after the other in negotiations with local authorities. While China remains the undisputed world’s largest auto market, Musk is insisting to keep full control of any local venture.
To illustrate what he feels are unfair terms favorable only to China, Musk posted on Twitter: “No U.S. auto company is allowed to own even 50 percent of their own factory in China, but there are five 100 percent China-owned EV (electric vehicle) auto companies in the U.S.”
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Also, no US auto company is allowed to own even 50% of their own factory in China, but there are five 100% China-owned EV auto companies in the US</p>— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/971812680594964480?ref_src=twsrc%5Etfw">March 8, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Musk said the issue has already been raised to the past administration but “nothing happened.” He added in one of his series of tweets: “Just want a fair outcome, ideally where tariffs/rules are equally moderate. Nothing more. Hope this does not seem unreasonable.”
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">We raised this with the prior administration and nothing happened. Just want a fair outcome, ideally where tariffs/rules are equally moderate. Nothing more. Hope this does not seem unreasonable.</p>— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/971815058475921408?ref_src=twsrc%5Etfw">March 8, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Musk’s rants are not falling on deaf ears this time as Trump quoted one of his tweets in his announcement on new tariff’s and also said American automakers have not been treated fairly by trade rules “around the world.” Trump has also announced steep tariffs on steel and aluminum imports on Thursday.
Consistent with his campaign pitch of pursuing better trade agreements to protect the interests of the U.S., Trump announced his plans to impose a “reciprocal tax” on other countries. He added: “We’re changing things. We just want fairness.”
Tesla has tried to build a factory in Shanghai, the financial capital of China. Musk even said in November that he hopes that the plant would be operating within three years. But no announcement of any agreement has been issued by both Musk and China.
China, however, has earlier vowed to look about the possibility of lowering import taxes for cars and carrying out a pilot scheme to loosen foreign ownership rules for new energy vehicles, in reference to fully-electric and plug-in hybrid cars.
Musk in one of his latest tweets, however, expressed fresh hopes that things will be worked out with China, after all.
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">To be clear, I think a fair outcome for all is quite likely. China has already shown a willingness to open their markets and I believe they will do the right thing.</p>— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/971898600274870272?ref_src=twsrc%5Etfw">March 9, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
It remains to be seen, however, how China would stay true to its word or impose their rules again.
Source:
Twitter: #MAGA #USA #China #trade #unfairtrade #ElonMusk #Tesla #automanufacturing
