BEIJING, May 30 (TMTPost)— Tesla CEO Elon Musk made clear about his hate of decoupling from China and vowed to further expansion in the key auto market.

Source: Visual China

The United States and China share intertwined and inseparable interests, and Tesla opposes decoupling, Musk remarked when he met with Chinese State Councilor and Foreign Minister Qin Gang on Tuesday.  The executive said Tesla is willing to continue to expand its business in China, and share the country's development opportunities.

Qin noted China’s new energy vehicle (NEV) sector, including the battery electric vehicle (BEV) and the plug-in hybrid electric vehicle (PHEV), boasts broad prospects as the ongoing Chinese style modernization will create unprecedented growth potential and market demand. China will continue to advance opening-up at a high level and create a better market-oriented, law-based, and international business environment for Tesla and other foreign companies, said Qin.

A healthy, stable and constructive China-U.S. relationship is in the interests of both two economies and the entire world, according to Qin. Compared to driving a Tesla car, Qin said such good relationship can only be materialized if both countries keep steering in the right direction of mutual respect, peaceful coexistence, and win-win cooperation proposed by President Xi Jinping, stepping on the brakes to avoid the dangerous driving is avoided, and stepping on the pedal to promote mutually beneficial cooperation.

Musk was also said to meet with his battery partner Zeng Yuqun, the chairman of Contemporary Amperex Technology Co. (CATL), during his first travel in China in three years. A picture circulated at social media on Tuesday showed Musk and Zeng, head of the No.1 electric vehicle (EV) battery maker, are walking side by side in the lobby of a hotel, with a closed distance and relaxed expressions. CATL didn’t confirm the picture yet. However, their discussions may involve topics such as a Megafactory in Shanghai to produce commercial Megapack battery energy storage units, a possible joint venture for battery production in North America and the supply of EV batteries, Chinese digital news media outlet The Paper cited analysis from insiders in the industry. Tesla earlier this month announced its second Megafactory to be set up in Shanghai, aiming to have annual output capacity of 10,000 battery storage units.

Musk’s remark echoed other leaders of major companies in the West. "The major players in the global economy, Europe, the U.S. and China, are so closely intertwined that decoupling from China makes no sense," Mercedes-Benz CEO Ola Kallenius said, according to a report of German newspaper Bid am Sonntag In the beginning of the month. Kallenius warned cutting economic ties with China was “unthinkable for almost all of German industry”. He said the purchasing power of Chinese should benefit his company and he was quite optimistic about the company’s sales growth this year.

Apple CEO Tim Cook praised the rapid high-tech development in his speech made in late March at the China Development Forum 2023, a state-organized event featuring the attendance of international executives of giants like Aramco, Mercedes-Benz, Samsung, Shell and Johnson & Johnson. Speech at that forum was one of Cook’s highlight moments in his first visit in China since the Covid-19 pandemic in 2020.

Though not directly responding to Apple’s much-concerned pivot trend from China, Cook at the forum underlined the inextricable links between his company and the top smartphone market. Apple and China grow together and that both sides enjoy the symbiotic relationship, said Cook, adding that there are billions of developers and very powerful supply chain in the country. Cook noted 2023 marks the 30th year for Apple to operate in China as the tech giant first opened its office there in 1993, while his personal engagement with China can even be traced back prior to joining iPhone maker.

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