US-China must avoid dangerous driving, Musk told

Elon Musk yesterday landed in Beijing in what is the billionaire's first visit to China in three years and held a meeting with the nation's Foreign Minister Qin Gang.

The chief executive of Tesla said he is willing to boost the electric carmaker's business in China, according to a government statement late yesterday.

Qin also told Musk that China's market for new energy vehicles has broad prospects for development and the country is committed to developing a good business environment for companies from various countries. Referring to US-China ties, Qin said that it's important to "get the steering wheel right" and "step on the brakes" in time to avoid "dangerous driving."

Musk is also expected to visit Tesla's Shanghai factory, sources said. He will potentially meet Premier Li Qiang as well to discuss automated-driving technology that Tesla is seeking to introduce in China, one of them said.

Ministry of Foreign Affairs spokeswoman Mao Ning earlier welcomed Musk and other business leaders, saying "we would like to see foreign investors operating in China, exploring the Chinese market and sharing in the dividends of the development of China."

Key areas of interest for Tesla watchers include the status of its plans to increase output by 450,000 vehicles a year at its Shanghai plant. It said in April it would build a nearby factory to produce Megapack energy storage products.

Tesla's Shanghai plant accounted for more than half its global production in 2022, and the facility can now produce as many as 1.1 million cars a year.

Another pending question is whether China regulators will clear the release of Tesla's advanced driver assistance features available in other markets as part of the "Full Self Driving" software it sells for US$15,000 (HK$117,000) per vehicle.

Meanwhile, JP Morgan chief executive Jamie Dimon is expected to join the bank's China summit today when he'll be confronting a business landscape that looks vastly different from his visit four years ago.

This year, the conference is being held against the backdrop of a US-China relationship that's at its worst in decades. A sluggish Chinese economy and Beijing's increased crackdowns on foreign businesses is forcing global banks to rethink their ambitions in the country, with revised profit goals and job cuts.

More than 2,600 bankers and clients will gather for two days at the Jing An Shangri-La hotel in the finance hub of Shanghai, a shift from its usual venue in Beijing.