Elon Musk, Tesla business in China, Xinjiang points to dark future

While some American companies, like Apple and Nike, have worked to remove Uyghur forced labor from their supply chains, Tesla went the opposite route, announcing at the end of last year that it would "launch Xinjiang on its electric journey!" This is exactly the type of support Beijing is looking for.And while Musk isn't breaking any US laws, he's spitting in the face of Washington by selling cars to the people who are profiting from the suffering of Uyghers."Certainly, the Han factory owners, whether the labor is forced or not, would be customers," James Milward, a Georgetown professor of Chinese and Central Asian history, told Insider, adding that "people making money off of land deals, developing new cities in the southern parts of the region to move Han in" would also be likely Tesla customers.When the news about the Xinjiang showroom came out, politicians from across the political spectrum were appalled. Republican Sen. Marco Rubio tweeted that "nationless corporations are helping the Chinese Communist Party cover up genocide and slave labor in the region." A Labour Party member in the UK Parliament called it "deeply unacceptable and shameful," and said Tesla was "complicit in the persecution of Uyghers."Kenneth Roth, the head of the nonprofit Human Rights Watch, pointed out that it would be near impossible for Tesla to know whether or not it was using products that had been made with slave labor.But Elon Musk's newfound respect for authority and willingness to launder China's reputation isn't as hard to wrap your mind around if you understand the terms of his deal with the country's officials.Musk's deference can be explained by what Tesla owes China. Musk's clashes with US regulators, Bryan explained, could lead to a future in which Tesla weans itself off its US factories and keeps most of its money and manufacturing in China."Just like he picked up his toys in California and went to Texas," she said.These issues, along with the fact that China is a growing portion of Tesla's business, means "China Elon" is always on his best behavior. Tesla has no new models coming out in 2022, which is a problem in China's dynamic EV market."What will likely happen is Musk will play with pricing on the Model Y to make up for the Model 3," Le said."In China it's the law of diminishing returns, though, because there's always new products.