Starlink disrupts Elon Musk’s business in China

Originally scheduled for the spring of 2023, the expansion of the Tesla factory in Shanghai has been delayed by Chinese authorities. In effect, Beijing concerned about possible links between SpaceX’s Starlink and Teslatwo American companies that belong to Elon Musk.

China curbs Tesla’s ambitions

The geopolitical context does not reassure Beijing. During Russia’s invasion of Ukraine last February, SpaceX delivered antennas to kyiv for free in an effort to bring internet to people in the country. Thanks to Starlink satellites, the Ukrainian army was able to ensure communications with its army.

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A show of force that alerted the Chinese government. Beijing has made it clear to Elon Musk that it does not want Starlink on its territory. US satellites are seen as a threat by the ruling Communist Party, a tool to circumvent China’s firm control of cyberspace.

The success of Tesla vehicles in China is also a scarecrow, because of the data recovered. Beijing says to itself increasingly concerned about data security and social stability “. Elon Musk may be a popular figure in China, but the country fears that the American billionaire could be in possession of gigantic amounts of data on its citizens in a tense geopolitical context. In March 2021 similar doubts had already been expressed.

Also, several information shows that the Chinese authorities are doing everything to delay the work initially planned on the Tesla site in Shanghai. The American automaker hoped to be able to double the production capacity of its gigafactory to produce around 2 million cars a year from its Chinese factory.

Elon Musk suffers tensions between Beijing and Washington

For the past few months, Tesla has been going through a complicated period in China. The American manufacturer has even decided to lower the prices of its vehicles to face national competition on the Chinese market.

For its part, the Biden administration has blocked the export of many technological products to China. The United States wants to isolate China from the rest of the world. A policy that logically has consequences for American companies present on Chinese territory.

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