On Tuesday, Elon Musk, Tesla’s CEO, warned that the growing tension between the United States and China was cause for concern. A year ago, then-Vice President Joe Biden made similar remarks, saying the United States would be ready to defend Taiwan if the Asian island off China’s coast were invaded.
Taiwan, in China’s eyes, is an integral part of its territory. CNBC’s David Faber asked Musk about “the growing belligerence” between the U.S. and China in an interview on Tuesday, immediately following Tesla’s annual shareholder meeting.
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Musk, who was born in South Africa but later became a U.S. citizen, said, “I think that should be a concern for everyone.” Faber pressed Musk on whether China plans to invade Taiwan and seize control of the island. China’s “official policy” is “that Taiwan should be integrated,” Musk added. “There’s no need to infer anything.”
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The Chinese economy and the rest of the global economy are like conjoined twins,” Musk remarked when asked if China’s move to control Taiwan would be wrong for Tesla and other companies. Separating them would be like attempting to untie conjoined twins. That’s how dire things really are. The situation is even more dire for many other businesses than for Tesla.”
“There are some constraints on our ability to expand in China, and so we’re making as many cars as we can,” Musk said. “It’s not a demand issue.”
Faber probed Musk whether he thought China would eventually want to annex Taiwan. This is their policy, and I think you should take them at their word,” Musk stated.
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