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  • Elon Musk met with Chinese Foreign Minister Qin Gang on Tuesday as she pushed for Beijing to show its openness to foreign trade, and Tesla’s CEO reportedly signaled further expansion in China.
  • The meeting between Musk and Qin comes amid continuing tensions between the US and China over technology.
  • In a statement issued by the Chinese Ministry of Foreign Affairs, Tesla opposes “separation” and is willing to expand its business in China.

Tesla CEO Elon Musk attends the opening ceremony for the Model Y program in Shanghai, east China, January 7, 2020.

Ding Ting | Xinhua News Agency | Getty Images

Elon Musk met with Chinese Foreign Minister Qin Gang on Tuesday as she pushed for Beijing to show its openness to foreign trade, and Tesla’s CEO reportedly signaled further expansion in China.

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

China’s electric vehicle market has great growth prospects and China will create a better market-oriented and law-based business environment for foreign companies like Tesla, he said.

According to a statement from China’s Foreign Ministry, Musk praised the Chinese people and China’s achievements. Tesla opposes “isolation” and is willing to expand its business in China, the statement said.

Tesla did not immediately respond to CNBC’s request to confirm the statement from China’s foreign ministry.

The meeting between Musk and Qin comes amid continuing tensions between the US and China over technology. Last year, Washington imposed broad export restrictions on key chips and semiconductor equipment to China, which could hamper Beijing’s efforts to boost its domestic industry with the critical technology.

This month, Chinese regulators barred “critical data infrastructure” operators in China from buying products from US chipmaker Micron.

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

Musk’s Tuesday visit to Tesla comes as the company faces intense competition and a price war in China. Tesla has been adjusting the prices of its cars in China amid a strong macroeconomic environment in the world’s second-largest economy.

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

“China will swing in my opinion” in 2020, Musk said.

Tesla’s largest car manufacturing plant is located in the Chinese mega-city of Shanghai, and in April the company announced plans to build another plant in the country to produce the Megapack energy storage system.

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