It seems that Ilon Mask still found himself a spare airfield – and no, he is not on the surface of the moon. During the visit of the creator of Tesla and SpaceX to China, the local government presented the entrepreneur with a Chinese “green card”, which allows Mask to become a tax resident of the Middle Kingdom and conduct business in this country. Now he is in China – he came to supervise the construction of the Tesla factory in Shanghai. And this is a serious reason to think for the US government. Why?
First, China became the first market, in addition to the United States, where Tesla decided to expand its own production. Ilon Musk clearly understands the full potential of the Chinese market and his workforce – it’s not for nothing that most companies, including Apple, manufacture their devices there. China allows you to minimize costs, unlike the United States.
In addition, Musk began to converge with the local government precisely when relations between China and the United States are very tense. Donald Trump wants to introduce import duties on goods from the Middle Kingdom and generally complicate trade between the two countries. Because of this, many American companies have already started having problems: for example, Apple CEO Tim Cook recently said that iPhone sales are going through hard times because of the “tightening the screws” by the US government.
China seeks to attract foreign investment and international personnel – such as Musk. However, the Chinese “green cards” are notoriously difficult to obtain. In 2016, about 10,000 foreign citizens received them. At the same time, more than 1 million people received permanent residence in the United States during 2017. But Tesla plant is too important for Shanghai. This is the largest industrial project in the history of the city, financed by a foreign corporation.
Therefore, if the US government continues its aggressive policy towards Ilona Mask (this includes the proceedings with the Securities Commission and Trump’s attention), he may well move to China and transfer all production to this country. The local government will be happy to accept investments in such amounts, and the entrepreneur himself will be able to reduce costs (although with the launch of satellites, difficulties may arise). So Mask has a new trump card up his sleeve.
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