Taiwan is “not for sale,” the island’s foreign minister said in a stern rebuke to Elon Musk, who asserted that the self-ruled territory was an integral part of China. The statement came after the All-In Summit in Los Angeles videos were uploaded to YouTube this week. During the event, Musk, owner of the social media platform X, formerly known as Twitter, and the Tesla (TSLA.O) electric car company and the Starlink satellite network, compared Beijing’s stance on the territory to that of Hawaii’s relationship with the United States.
The ministry’s Joseph Wu tweeted late Wednesday that “Taiwan is not part of the PRC & certainly not for sale!” referring to the People’s Republic of China, the official name of China. He also called on Musk, who is scheduled to visit China later this month to open a battery factory in Shanghai as part of the Tesla Gigafactory project, to ask Beijing to allow users in the country to use X. Like many Western social media platforms, X is blocked in mainland China.
Last year, Musk sparked outrage when he suggested that tensions between Beijing and Taipei could be resolved by Beijing ceding control of the island to it. The democratically elected government in the self-ruled region firmly rejects China’s sovereignty claims and believes that only its citizens can decide their future.
The latest comments from Musk have heightened tensions as the billionaire continues to push for closer economic ties between Washington and Beijing, including a free-trade agreement that would cut tariffs on each side’s products. In addition, China’s growing investment in the US and aggressive moves to reclaim disputed territories have stoked tensions between the countries.
Tesla is deeply reliant on China, which accounted for over half of the automaker’s global sales in 2022. The firm has several factories in the country, including its main factory in Shanghai, which produces batteries for the Model 3 sedan. It is expected to expand production capacity there next year.
Aside from its technology, Tesla is also a significant customer of Chinese suppliers. The company uses lithium-ion batteries made by LG Chem, one of the world’s largest metal producers. The firm also buys advanced semiconductor chips made by TSMC, the world’s biggest chipmaker, located in Hsinchu, the capital of Taiwan.
TSMC is a significant shareholder in the Tesla Gigafactory, which will be able to produce cars with larger batteries and lower costs as production ramps up. The chipmaker’s shares fell 1% on Tuesday after Berkshire Hathaway (BRK.A) announced in a filing that it was giving up its majority stake in the company. It had been acquired by Buffett’s private holding company in 2016. TSMC, which employs nearly 200,000 people worldwide, is responsible for producing most of the advanced semiconductors used in high-tech gadgets from Apple (AAPL.O) to Google (GOOGL.O). Its products are sold in more than 160 countries and territories worldwide.
