Recently, Elon Musk, CEO of Tesla, visited China and met with several high-level officials. For Musk, the visit was part of his efforts to expand his business. For China, the visit signaled its commitment to openness and its ongoing willingness to collaborate. Against a backdrop characterized by unprecedented geopolitical complexity and an unabating drive toward deglobalization, this commitment will facilitate a recovery in China’s economy. It also serves as the most effective response to certain countries’ schemes to encourage “decoupling and disconnection.”
Musk’s visit was not an isolated case. Global business titans have been flocking to China in droves, mirroring the number of local Chinese government delegations that have recently been heading abroad to attract foreign investment. The dismantling of China’s “zero-Covid” regime does much to explain the timing of these visits, but they are also rooted in mutual interest. China needs foreign investors, and foreign investors need China’s market. It’s no secret that many multinational corporations are now cautiously taking a close look at China. Some foreign entrepreneurs have been more low-key than Musk on their trips to China, observing more and talking less. Although many have described these trips as “business as usual,” multinational corporations have felt the effects of the strain in Sino-U.S. relations. They have been caught in the middle, yet strive to resist calls for “decoupling and disconnection.” Musk has explicitly stated that Tesla opposes “decoupling” and wants to continue expanding its operations in China and share in the country’s developmental opportunities. This attitude is commendable.
