As Elon Musk strolled through Capitol Hill to meet with Senate Republican Leader-elect John Thune on December 5, 2024, a significant political stir was already brewing back in Washington. House Democrats Jim McGovern of Massachusetts and Rosa DeLauro of Connecticut were vocal about their concerns, criticizing their Republican counterparts for bowing to Musk’s demands. They claimed this move torpedoed a bipartisan funding bill aimed at regulating U.S. investments in China.
In an effort to prevent a government shutdown, Congress passed a separate temporary funding measure over the weekend. McGovern, reflecting on the opportunity missed, took to the social media platform X to express frustration. He pointed out that the discarded provision could have helped retain advanced artificial intelligence and quantum computing technologies—and the associated jobs—in the United States. The sticking point, as McGovern noted, was Elon Musk’s involvement.
Tesla, the automotive giant led by Musk, is unique in operating a manufacturing facility in China without forming a partnership with a local entity. Earlier this year, Tesla set up a battery plant near its Shanghai vehicle factory, while also aspiring to sell self-driving car technology in the Chinese market. “His financial interests heavily rely on good relations with China,” McGovern remarked, suggesting Musk’s ambitions to build an AI data center there could pose risks to U.S. security. “He seems overly eager to endear himself to Chinese leaders,” McGovern added.
SpaceX, Musk’s aerospace and defense company, has reportedly pulled back its Starlink internet service in Taiwan under pressure from Chinese and Russian authorities. The status of Taiwan, a self-governing democracy that China claims as its own, remains one of the most contentious issues in U.S.-China diplomatic relations.
Rosa DeLauro, a leading Democrat on the House Appropriations Committee, echoed these concerns in a letter to Congress last Friday. She highlighted Musk’s dependency on Chinese government approval for his ventures in the country, expressing worry over his efforts to “ingratiate himself with Chinese Communist Party leadership.”
In her letter, DeLauro somewhat facetiously referred to Musk as “President” Musk, noting his vocal opposition to the previous funding bill right before President-elect Donald Trump voiced his own criticisms. Trump had aimed for the Republicans to ditch the initial bill and introduce a new one, which would include raising the debt ceiling, thus sidestepping that challenge at the onset of his second term. However, the interim funding measure signed by President Joe Biden on Saturday did not address Trump’s demands for a two-year suspension of the U.S. debt limit.
Musk did not take DeLauro’s remarks lightly, responding with a sharp retort, calling her an “awful creature” in a social media post on X.
Since taking over Twitter in 2022 and rebranding it as X, Musk has notably used the platform to aid Donald Trump’s return to the presidency, establishing himself as a significant advisor and a heavyweight supporter. He generously contributed $277 million to Trump’s campaign and other Republican initiatives in the 2024 election cycle, Federal Election Commission records show. His close association with Trump has been evident post-election, as Musk frequently appears alongside Trump, especially in discussions with international leaders.
Recently, Trump appointed Musk to help co-lead a nascent group designed to explore strategies for slashing regulations, reducing staffing, and trimming budgets.
Stay tuned to watch how Musk’s considerable sway influences governmental actions.