Drive an hour outside China’s commercial capital Shanghai, and you’ll reach Elon Musk’s Tesla gigafactory.
It manufactures almost one million Tesla cars a year and produces more than half of all its cars worldwide.
But with US president-elect Donald Trump preparing to move into the White House, the relationship between his new buddy Elon Musk and the leadership of China‘s Communist Party is in sharp focus.
Shanghai has been the key to Tesla’s success, largely thanks to the city’s former Communist Party secretary, now China’s premier, Li Qiang.
Chief executive of Shanghai-based Auto Mobility Limited, Bill Russo, says: “Qiang is China’s number two person. His position in Shanghai made everything possible for Tesla.”
He added: “In 2017, China adjusted its policy guidelines for the automotive industry to allow foreign companies to own their factories in China.
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Musk, Trump and China explained
“Tesla signed its deal in 2018, broke ground in 2019, and started producing the Model 3 in 2020.”
The factory opened at breakneck speak and in record time.
In April, Musk met Qiang in Beijing, later posting on X: “Honoured to meet with Premier Li Qiang. We have known each other now for many years, since early Shanghai days.”
Image: Elon Musk met Chinese premier Li Qiang in Beijing in April 2024. Pic: AP
The Musk-China ties go all the way to the top.
When China’s President Xi Jinping visited the US in November 2023 he met Musk, who posted: “May there be prosperity for all” – echoing the language often used by China’s government.
Image: Inside a Tesla showroom in Shanghai. Pic: Lex Ramsay
Musk has previously weighed into the debate over the status of Taiwan. Two years ago, he suggested tensions could be eased by giving China some control over Taiwan.
This comment incensed Taiwan’s leaders.
Chinese commentator Einar Tangen, from the Taihe Institute in Beijing, says: “If Musk had said anything else, he could face action against the Shanghai plants. He’s not going to endanger that. He’s playing both sides for his own advantage.”
What’s in it for China?
Musk needs China, and in the months to come, China may need Musk.
He could act as a well-connected middleman between the Chinese Communist Party and Trump, in the face of a potential global trade war.
“Like it or not, we are living in a world where China is the dominant player in the race to an electric future,” says Russo.
Musk pioneered the EV industry in China, but is now struggling to compete with local car brands like BYD and Nio.
Image: Elon Musk’s support helped propel Donald Trump to a second term in the White House. Pic: AP
“Donald Trump has never had a problem giving exceptions to friends,” Tangen says.
“It fits his personality, that he can grant pardons and give favours to the people and companies he chooses.”
Musk ‘the pioneer’
Musk is well regarded as a pioneer in China and most people speak of him highly.
Strolling along the Bund waterfront area in Shanghai, Benton Tang says: “Tesla really impacted the entire industry here.
“It pushed people to develop and improve the quality, the design and especially the price.”
Image: Chinese vehicle manufacturers like BYD provide stiff competition for Tesla. Pic: Lex Ramsay
Interest in the Musk family has also gripped China’s online community.
His mother, Maye Musk, frequently visits the country, where she has a huge social media following as a senior-age celebrity fashion icon and endorses several Chinese products including a mattress brand.
Her book, A Woman Makes A Plan, has been translated into Chinese and is a bestseller here.
Image: Maye Musk. Pic: Reuters
Meanwhile, as the countdown to Trump’s inauguration gains pace, the spotlight on the president-elect’s coterie of advisers intensifies.
Donald Trump says the Gaza ceasefire should be cancelled if all remaining Israeli hostages are not returned by noon on Saturday – as he warned Hamas that “all hell is going to break out”.
The US president’s intervention came hours after Hamas has said it will delay the release of more hostages and accused Israel of violating their ceasefire deal.
While signing a series of new executive orders, Mr Trump said he feared many Israeli hostages scheduled for release are already dead.
Referring to his Saturday deadline for the release of hostages, Mr Trump said: “If they’re not here, all hell is going to break out.”
He acknowledged that a decision to end the ceasefire was up to Israel, adding: “I’m speaking for myself. Israel can override it.”
Hours earlier, Mr Trump said Palestinians would not have the right to return under his plan for US “ownership” of Gaza – contradicting officials in his administration who said they would be relocated temporarily.
Image: Widespread destruction seen in Gaza City. Pic: AP
Hamas halts release of hostages
Earlier on Monday, Hamas claimed ceasefire violations had included “delaying the return of the displaced to the northern Gaza Strip, and targeting them with shelling and gunfire”.
Spokesman Abu Obeida said Hamas remained committed if Israel kept to the terms, but that the 15 February handover was postponed “until the occupation commits to and compensates for the past weeks”.
Egyptian security sources told Reuters that mediators now fear the deal will break down.
They said Hamas believes Israel isn’t serious about the ceasefire – which began on 19 January.
They were among about 250 people taken during the 7 October 2023 attack, when 1,200 people were murdered.
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Tears as Thai hostages return home
Five swaps have taken place so far, with 21 hostages and more than 730 Palestinian prisoners released.
Saturday’s exchange was due to involve three more Israelis and hundreds of Palestinians.
Defence minister Israel Katz said any delay in releasing hostages would be “a complete violation” and he had instructed troops to be on highest alert.
The Hostages and Missing Family Forum called on mediating countries to restore the deal, saying “time is of the essence” and citing “the shocking conditions of the hostages released last Saturday”.
The four-mile-long Netzarim corridor separates northern Gaza from the south, and hundreds of thousands of displaced Palestinians have now crossed back over.
However, Israel pushed back the withdrawal by a few days in protest at the chaotic release of hostages Arbel Yehud and Gadi Moses.
This may be what Hamas is referencing what it talks of “delaying the return of the displaced”.
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Palestinians return to destroyed Netzarim
There have also been examples of Israeli troops shooting at or near Palestinians approaching Israeli forces after being warned to stay back.
So far, little progress has been made on an extension to the first six-week phase of the ceasefire.
A delegation from Israel has arrived in Qatar for further talks amid concern the deal might collapse before all remaining hostages are freed.
Israel has previously said it will not agree to a complete withdrawal from Gaza until Hamas’s military and political capabilities are eliminated.
Hamas has countered that it will not hand over the final hostages until Israel removes all its troops from Gaza.
Donald Trump has said Palestinians would have no right to return to Gaza under his proposal to relocate its population and rebuild the Strip.
The president last week debuted his suggestion to “own” Gaza and shut out Hamas while it’s redeveloped, but has now contradicted officials who had said any relocation would be temporary.
Asked by Fox News if Palestinians could return, he replied: “No, they wouldn’t, because they’re going to have much better housing. In other words, I’m talking about building a permanent place for them.”
Speaking on Monday at the White House, Mr Trump also suggested the current ceasefire in Gaza should end on Saturday if Hamas does not release hostages as planned.
He then went further, saying all the remaining hostages should be released by midday on Saturday, or the ceasefire should be cancelled – and that “all hell is going to break out” if the hostages are not freed then.
But the US president added: “I’m speaking for myself. Israel can override it.”
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‘I would own this’ – Trump on Gaza
Mr Trump told Fox News his future vision for Gazawas to build multiple “safe communities, a little bit away from where they are, where all of this danger is”, adding the area is currently “not habitable”.
He said he believed he could cut a deal with Jordan or Egypt to take people in.
However, Arab allies – including Egypt and Saudi Arabia – have dismissed the idea of relocating Gaza’s two-million-plus population.
Western countries have also rejected the proposal; an independent state for Palestinians remains the favoured way forward but is a no-go for the Israeli government.
When asked in the media, Palestinians have also rubbished the idea.
Israeli Prime Minister Benjamin Netanyahu has supported Mr Trump’s controversial proposal.
Image: Donald Trump meets with Israeli Prime Minister Benjamin Netanyahu in the Oval Office. Pic: Reuters
Much of Gaza lies in ruins due to Israel‘s attempt to wipe out Hamas after its 2023 terror attack that killed around 1,200 people in Israel.
About 250 were also kidnapped, but those still alive have started to be released in recent weeks after a hard-won truce took effect last month.
Since the ceasefire began on 19 January, five swaps have taken place – with 16 Israeli and five Thai hostages released.
In total, Israel has said it will release up to 1,904 Palestinian prisoners in return for 33 Israeli hostages during the deal’s first phase.
Prospect of no return most offensive part of radical plan
From Donald Trump, it’s a hardened “No”. Asked directly if Palestinians would have the right to return to a redeveloped Gaza, he told Fox News Channel’s Brett Baier: “No, they wouldn’t, because they’re going to have much better housing.”
If the notion of Trump building on Gaza has offended its people, most offensive is the prospect for them of no return. Since Donald Trump first suggested taking and building on Palestinian land, observers in America, the Middle East and all countries in between have been assessing its seriousness.
Everything he’s said since indicates he’s committed both to the project and to ignoring entrenched objections from allies and adversaries alike.
In spite of flat refusals by Jordan and Egypt to resettle Palestinians in those countries, Trump said: “I think I could make a deal with Jordan. I think I could make a deal with Egypt. You know, we give them billions and billions of dollars a year.”
If peace in the Middle East was a matter of money, it would have been solved long ago. Tuesday’s meeting in Washington between Trump and Jordan’s King Abdullah won’t be easy.
In the White House, the Jordanian leader will talk numbers of his own – the hundreds of thousands of Palestinian refugees already living in the Hashemite kingdom and the instability threatened by moving more.
Trump is also due to meet the Egyptian president and the Saudi crown prince in the coming days – it is a chorus of Arab voices to caution an expansionist president at a delicate time, as parties involved in the current conflict work through the phases of a ceasefire deal.
Trump’s plan is radical and it invites fresh-eyed debate over a way forward for the region.
However, it is the property deal that separates a people from their home – again. At the heart of a radical plan, it’s the inherent recklessness.
So far, little progress has been made on an extension to the first six-week phase of the ceasefire.
A delegation from Israel has arrived in Qatar for further talks amid concern the deal might collapse before all remaining hostages are freed.
Hamas has said it will delay the release of more hostages after accusing Israel of violating their ceasefire deal.
It said Saturday’s planned handover would not go ahead, presenting the Gaza truce with its first major crisis.
A spokesman claimed violations had included “delaying the return of the displaced to the northern Gaza Strip, and targeting them with shelling and gunfire”.
Abu Obeida said Hamas remained committed if Israel kept to the terms, but that the 15 February handover was postponed “until the occupation commits to and compensates for the past weeks retroactively”.
The last release of hostages was at the weekend, when three Israeli men and five Thai men were freed.
They were among about 250 people originally taken during the October 2023 terror attack that killed around 1,200 people.
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The hostage deal began last month and more than 730 Palestinian prisoners have been released in exchange. There’s also been a crucial truce in the Gaza War.
Five swaps have taken place so far, with 21 hostages set free by Hamas after 16 months in captivity.
Saturday’s swap was due to see three more Israelis and hundreds of Palestinians released.
Prime Minister Benjamin Netanyahu will bring forward an assessment with his security cabinet to today, according to an Israeli official.
Defence minister Israel Katz said any delay would be “a complete violation” and he had instructed troops to be on highest alert.
The Hostages and Missing Family Forum called on mediating countries to restore the deal, saying “time is of the essence” and citing “the shocking conditions of the hostages released last Saturday”.
Biggest threat to the ceasefire so far
Strangely, Hamas makes no reference to President Trump’s vow to “own” Gaza, evict Palestinians from the Strip and prevent them from returning. A plan that has been jumped on by many in Israel, including Benjamin Netanyahu.
It’s possible Hamas is also seeking to capitalise on the shock and anger inside Israel after the three hostages released last Saturday were so emaciated.
Many in Israel blame Netanyahu for not doing a deal sooner and urged him to make sure the ceasefire holds. Hamas might be looking to add to that pressure.
The ceasefire has been fragile since it was agreed, and has overcome a number of bumps.
There is still five days until the next release, time for the mediators to mend the differences, but this is the biggest threat to the ceasefire so far and could see it collapse altogether.
The potential delay comes as President Trump reiterated his controversial proposal for the US to take over and rebuild Gaza, adding that Palestinians forced out would have no right to return.
Arab countries would agree to take in Palestinians after speaking with him, Mr Trump said, adding that its residents would leave if they had a choice.
“They don’t want to return to Gaza. If we could give them a home in a safer area – the only reason they’re talking about returning to Gaza is they don’t have an alternative,” he said.
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The four-mile-long Netzarim corridor separates northern Gaza from the south, and hundreds of thousands of displaced Palestinians have now crossed back over.
However, Israel pushed back its withdrawal a few days in protest at the chaotic release of hostages Arbel Yehud and Gadi Moses.
This may be what Hamas is referencing what it talks of “delaying the return of the displaced”.
There have also been examples of Israeli troops shooting at or near Palestinians approaching Israeli forces after being warned to stay back.
The hard-won ceasefire deal took effect on 19 January and is in its first 42-day phase – but so far little progress has been made on an extension.
A delegation from Israel has arrived in Qatar for further talks amid concern it might collapse before all remaining hostages are freed.
Israel has previously said it will not agree to a complete withdrawal from Gaza until Hamas’s military and political capabilities are eliminated.
Hamas has countered that it will not hand over the final hostages until Israel removes all its troops from Gaza.