Tesla Inc CEO Elon Musk is worried about escalating geopolitical tensions between the U.S. and China and thinks that everyone else should be concerned too.
What Happened: Musk, in response to a question about the “growing belligerence between the U.S. and China,” during an interview on CNBC, said, “I think that should be a concern for everyone.”
According to the tech billionaire, there is “some inevitability” about Xi Jinping's move to take control of Taiwan, a self-governed island where Beijing claims sovereignty.
“The official policy of China is that Taiwan should be integrated,” Musk said, adding that “one does not need to read between the lines.”
"The Chinese economy and the rest of the global economy are like conjoined twins. It would be like trying to separate conjoined twins. That's the severity of the situation. And it's actually worse for a lot of other companies than it is for Tesla. I mean, I'm not sure where you're going to get an iPhone, for example."
See Also: US Rejected From Storing Weapons In Philippines To Defend Taiwan Against Possible Chinese Attack
Why It Matters: The China-U.S. ties have been strained in recent years due to trade disputes, human rights concerns, and tensions over Taiwan and the South China Sea. Xi’s government has long desired reunification with Taiwan, a goal that remains a top priority for China. China considers Taiwan a renegade province and has not ruled out using force to take control.
On Tuesday, the Chinese military warned that it will “resolutely smash any form of Taiwan independence.”
Read Also: China ‘Aspires' To Be ‘Evil Empire' Under Xi Jinping, Says Pence In Jibe At Trump
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.