Elon Musk meets China’s foreign minister as Tesla boss touts expansion in the country

Elon Musk met with Chinese Foreign Minister Qing Gang on Tuesday as Beijing pushed to show it is open to foreign business and Tesla The CEO has reportedly signaled further expansion into China.

Qin, who until recently was China’s ambassador to the US, said “Chinese-style modernization” characterized by a huge population and “general prosperity” would create “unprecedented potential for growth and market demand,” according to a statement from China’s foreign ministry .

He added that China’s electric vehicle market “has broad development prospects” and that China will continue to open up and create a better market-oriented and law-based business environment for foreign companies such as Tesla.

According to the Chinese Foreign Ministry statement, Musk praised the Chinese people, the Chinese people and China’s achievements. Tesla opposes the “spin-off” and is ready to continue expanding its business in China, the statement said.

Tesla did not immediately respond to a CNBC request to verify the Chinese Foreign Ministry’s statement.

The meeting between Musk and Qin comes at a time of continued tensions between the US and China over technology. Last year, Washington imposed wide-ranging restrictions on exports of key chips and semiconductor equipment to China, in a move that could hamper Beijing’s attempts to boost its domestic industry in critical technology.

This month, Chinese regulators banned operators of “critical information infrastructure” in China from buying products from US chipmaker Micron.

China’s foreign minister said on Tuesday that “constructive” relations between the US and China are in the interests of both countries and the world.

For Tesla, Musk’s visit on Tuesday comes as the company faces increased competition and a price war in China. Tesla adjusted the prices of its cars in China amid a tougher macroeconomic environment in the world’s second-largest economy.

The Chinese Foreign Ministry statement did not provide many details about what was discussed between Musk and Qin. China is Tesla’s second largest market and Musk is keen to maintain good relations with Beijing. The billionaire has promised investments over the years and praised the country’s technology.

“I think China is great,” Musk said in 2020.

Tesla’s largest car manufacturing factory is in the Chinese megacity of Shanghai, and the company in April announced plans to build another plant locally to produce its Megapack energy storage system.