Elon Musk praises China’s leadership, advocates for AI regulation
Tesla's CEO called Xi Jinping a 'great leader' and predicted China will close its AI compute gap within three years
Elon Musk used a CCTV interview aired on September 23 to heap praise on Chinese President Xi Jinping, calling him a “great leader” while advocating for joint US-China efforts on AI safety regulation. The comments landed just as Xi prepared to visit the US for a summit with President Donald Trump, a diplomatic moment Musk appears eager to help shape.
Tesla and xAI chief also called for lower tariffs and fewer trade restrictions between the two largest economies on Earth.
The AI angle
Musk described Chinese AI models as “very excellent.” He acknowledged that Chinese developers currently face computational constraints but predicted they would close that gap within two to three years.
The mechanism, according to Musk, would be breakthroughs in lithography and chip manufacturing. That’s significant because US export controls on advanced semiconductors have been one of Washington’s primary tools to slow China’s AI development. Musk essentially argued that those restrictions have an expiration date.
Tesla’s China dependency
Tesla’s Shanghai Gigafactory has produced over 4.5 million vehicles to date, accounting for more than 45% of the company’s total cumulative global output.
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Wholesale sales for Tesla in China rose 25.6% year-on-year during the first eight months of 2026, totaling 647,694 vehicles.
Summit dynamics and trade implications
The interview’s timing coincided with Xi’s planned US visit for a summit with Trump. Musk is expected to attend a state dinner connected to the summit alongside other tech leaders.
His public call for tariff reductions serves dual purposes. Lower trade barriers would benefit Tesla directly by reducing costs on components and vehicles moving between markets.