Thread by @JuddLegum

1. Trump's policy toward China has changed dramatically since taking office.

During the campaign, he promised tariffs of 60% or more.

Now Trump is down to 10% tariffs on China — or none at all

How do you explain the sudden shift?

Two words: Elon Musk

2. Tesla, which accounts for the bulk of Musk’s estimated $440B net worth, operates its largest factory in Shanghai, which produces one million cars per year. 50%+ of all Teslas produced in the last four quarters were made in the Shanghai factory

muskwatch.com/p/how-do-you-e…

3. Musk secured $521 million in loans from state-owned Chinese banks to fund the construction of the Tesla Shanghai factory. Tesla Shanghai also pays a discounted corporate tax rate of 15%, instead of the customary 25% rate.

4. The Tesla Shanghai factory, according to a commentary published by the Chinese Communist Party, is "an ideal way to convey Beijing’s position that there are no winners in trade wars and close economic ties benefit the U.S."

5. The commentary implicitly underscores that Musk would be a prime target of Chinese retaliation in a trade war.

Meanwhile, Musk is expanding in China. Last year, Tesla broke ground on a $200 million battery plant in Shanghai. Musk met with Chinese Premier Li Qiang shortly before sealing the deal.

6. For journalism that connects the dots between Musk's financial interests and his political influence, don't rely on an algorithm controlled by Musk.

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