Elon Musk offers to resolve China-Taiwan tensions, comes up with a 'plan'. See what it is?

Elon Musk has predicted that a fight over Taiwan was unavoidable and warned of the possible consequences for not only Tesla but also iPhone manufacturer Apple Inc. and the wider economy.

Agencies
Billionaire Elon Musk said tensions between China and Taiwan could be settled by turning over the partial authority of Taiwan to Beijing, just days after floating a hypothetical settlement to end the war between Russia and Ukraine that prompted outrage in Ukraine, media reports said.

His advice was to create a relatively acceptable special administrative zone for Taiwan, which would most likely not please everyone, the reports said. Musk made the comments in response to a question about China, where his Tesla electric vehicle business has a huge facility in Shanghai.



Taiwan 'to test-fire missiles in US' as China tensions rise
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Relations between China and Taiwan have cooled rapidly under the island's new Beijing-sceptic president Tsai Ing-wen, who took office in May, ending an eight-year rapprochement.
Relations between China and Taiwan have cooled rapidly under the island's new Beijing-sceptic president Tsai Ing-wen, who took office in May, ending an eight-year rapprochement.


China, which claims democratically-run Taiwan as one of its provinces, has long pledged to annex it. It has also not ruled out using force to do so. Taiwan's administration firmly opposes China's claims, saying that only the island's 23 million people can decide its fate. Musk stated that it is doable and that they may get a more favorable agreement than in Hong Kong.

Last year, the Shanghai facility accounted for over half of Tesla's global deliveries. Musk also stated that China has requested guarantees that he will not provide his SpaceX rocket company's Starlink broadband connection there.

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Musk warned of the potential ramifications for not just Tesla, but also Apple Inc. and the broader economy.

FAQs


  1. When did the dispute between China and Taiwan begin?
    Tensions between the People's Republic of China (PRC) and the Republic of China (ROC) began in the 1950s.
  2. Who is Elon Musk?
    He is the world's richest man and the CEO, founder and chief engineer of SpaceX.
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