Elon Musk walks on Capitol Hill on the day of a meeting with Senate Republican leader-elect John Thune (R-SC), in Washington, US, December 5, 2024.
Benoit Tessier | Reuters
House Democrats Jim McGovern of Massachusetts and Rosa DeLauro of Connecticut say their Republican colleagues in Congress have capitulated to Elon Musk's demands, sinking a bipartisan government funding bill that would have regulated American investments in China.
Congress passed a separate temporary funding bill over the weekend, averting a government shutdown.
In a series of posts on X, McGovern said more could have been accomplished. The repealed provision “would have made it easier to keep cutting-edge AI and quantum computing technologies — as well as jobs — in America,” he wrote. “But Elon had a problem.”
Teslarun by Musk, is the only foreign automaker to operate a factory in China without a local joint venture. Tesla also built a battery factory down the street from its auto factory in Shanghai this year, and aims to develop and sell self-driving vehicle technology in China.
“His bottom line depends on remaining in China’s good graces,” McGovern wrote of Musk. “He wants to build an AI data center there as well — which could put US security at risk. He has been doing everything he can to curry favor with Chinese leaders.”
SpaceX, Musk's space and defense contractor, reportedly blocked Starlink satellite internet service over Taiwan at the request of Chinese and Russian leaders. Taiwan is a democratic, self-governing country that Beijing claims as its territory. The Taiwan situation is one of the biggest flashpoints in US-China relations.
DeLauro, the top Democrat on the House Appropriations Committee, wrote in a letter to Congress on Friday that Musk needs “Chinese government approvals for his company's projects in the country.” She wrote that it was troubling that Musk had “cozied up to the leadership of the Chinese Communist Party.”
In the letter, DeLauro referred to the Tesla and SpaceX CEO as “Chief” Musk, a reference to the fact that the world's richest person began protesting against the pre-funding bill on Wednesday, before President-elect Donald Trump came out with a statement about his candidacy. king.
Trump had wanted the GOP to sink the bill, passing a new law that would raise the debt ceiling so he could avoid that fight during the start of his second term in office. The temporary funding bill, signed by President Joe Biden on Saturday, did not include a two-year suspension of the US debt cap that Trump had sought.
Musk responded to DeLauro's concerns by calling her a “horrible creature” in a post on X.
After acquiring Twitter in 2022, Musk renamed it X and used it to help return Trump to the White House, becoming a close advisor and key supporter of the incoming president along the way.
Musk contributed $277 million to the Trump campaign and other Republican causes during the 2024 cycle, according to Federal Election Commission filings. Since the election in November, Musk has been a virtual presence at Trump's side, including in meetings with foreign leaders.
Trump has appointed Musk to co-lead the group, which has not yet been formed, but will be tasked with finding ways to cut regulations, staffing and budgets.
Watch: Musk's influence on the government
