Chinese investors may’ve found a way to do biz with Musk without drawing Trump’s ire

Wealthy investors from China are channeling tens of millions of dollars into private enterprises under billionaire Elon Musk’s control, through a strategy that keeps their identities concealed, Reuters reported on March 9 citing the Financial Times.

This influx of capital is being funneled through special-purpose vehicles to circumvent the scrutiny of U.S. authorities and companies that are cautious about Chinese investment amid strained relations between the two nations, according to asset managers and investors involved in these deals.

Three asset managers backed by Chinese investors informed the Financial Times that they have sold over $30 million in shares of Musk’s private technology firms, including SpaceX, xAI, and Neuralink, to investors in the last two years.

The primary motivation behind this influx of Chinese investment into Musk’s ventures appears to be profit-oriented and not focused on technology transfer or swaying public policy, as stated by the sources to the FT. SpaceX, xAI, and Neuralink have not provided immediate comments in response to inquiries.

Musk has established connections with high-ranking Chinese officials, including President Xi Jinping. His electric vehicle (EV) company, Tesla, manufactures its Model 3 and Model Y vehicles in China and also exports these China-produced EVs to various markets, including Europe, where sales saw a significant drop of 45% in January.Beyond Tesla, other ventures associated with Musk, such as SpaceX and the social media platform X—which is prohibited in China—are perceived by the Chinese government as potential security threats.