Donald Trump didn’t mince words. When he discovered Elon Musk was set to attend a highly classified Pentagon briefing on U.S. plans in the event of a war with China, the President reportedly exploded: “What the f*** is Elon doing there? Make sure he doesn’t go.”
According to Axios, Trump personally intervened to cancel the Tesla CEO’s invite. The reason? Concerns that Musk, whose empire includes deep investments and longstanding relationships in China, posed a conflict of interest. The meeting, originally scheduled for March, was meant to share critical military contingency planning with select individuals. Musk's inclusion raised red flags at the highest level.
Though the White House denied any discussion of war with China was ever planned, the leak set off alarm bells—and heads rolled.
Leak fallout: Suspensions and public denials
Following the leak, Defence Secretary Pete Hegseth suspended two Pentagon officials, Dan Caldwell and Darin Selnick, as part of an ongoing investigation. The New York Times had first reported that Musk would receive the briefing. Trump quickly hit back, calling the story “completely untrue” and labelling it “fake news” on Truth Social.
Still, the decision to cut Musk from the meeting was made shortly after the article was published—suggesting the concerns were very real, regardless of public denials.
Secretary Hegseth later clarified on X, “The fake news delivers again—this is NOT a meeting about ‘top secret China war plans.’ It’s an informal meeting about innovation, efficiencies and smarter production.” Musk, who did attend a separate Pentagon meeting on 21 March, claimed the session was “great” and denied that China came up at all.
A growing rift behind closed doors
Despite his exclusion from the China briefing, Musk continues to wield influence in Trump’s orbit. Vice President JD Vance downplayed the fallout, saying Musk would remain a “friend and adviser,” even as he steps back from a front-line role in Trump’s plans to overhaul federal bureaucracy through the Department of Government Efficiency (DOGE).
But the tone is changing. Trump has acknowledged Musk's potential vulnerability, telling reporters: “Elon has businesses in China, and he would be susceptible perhaps to that.” He added, “Certainly you wouldn’t show [military plans] to a businessman.”
That shift marks a significant departure from earlier in the year, when Trump appeared unconcerned by Musk's private diplomacy—including a meeting with Indian Prime Minister Narendra Modi. “They met, and I assume [Musk] wants to do business in India,” Trump said casually at the time.
‘Kind of pro-China’
Musk has never hidden his admiration for China. He’s praised the country’s work ethic, defended Beijing’s positions on several issues, and refrained from criticising its censorship laws—despite styling himself a “free speech absolutist.” “I’m kind of pro-China,” he once said.
The reason is straightforward: Tesla’s survival is intertwined with China’s market. The company’s Shanghai gigafactory, opened in 2019 with hundreds of millions in loans from Chinese banks, now produces half of Tesla’s global output. It was the first wholly foreign-owned auto plant in the country, and remains Tesla’s largest facility. Last year, while global sales fell, Tesla’s China sales rose by nearly 9%.
“It’s their second most important market and the only market that’s continuing to grow,” said Tu Le, director of market research firm Sino Auto Insights.
Musk’s ties run deeper than business. He has longstanding relationships with top Chinese officials, including Premier Li Qiang, who once offered him a Chinese green card.
Tariffs and tension
But the business-political nexus is becoming increasingly fraught. Trump’s aggressive trade war with China has seen U.S. tariffs on Chinese goods soar to 145%, with China responding with a 124.1% rate on American imports. Tesla—caught in the crossfire—has voiced its displeasure.
In a letter to the White House, the company warned: “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.” Musk has echoed this frustration publicly, telling Italy’s Deputy Prime Minister Matteo Salvini: “Ideally… Europe and the U.S. should move to a zero tariff situation.”
He has also taken aim at Trump’s trade team. In particular, Musk called Peter Navarro—a key architect of the tariff strategy—“a moron,” adding that he was “dumber than a sack of bricks.”
Two sources told The Washington Post that Musk personally tried to persuade the administration to soften its tariff approach. His efforts were rebuffed.
A man out of step
As Trump hardens his stance on China, Musk’s closeness to Beijing is increasingly awkward for the administration. While other CEOs maintain cordial but cautious relationships with the Chinese government, Musk has been more effusive—and more vocal.
“[Apple CEO] Tim Cook is not on Twitter talking about how awful USAID is or meddling in European politics,” noted Isaac Stone Fish, CEO of Strategy Risks, a consultancy focused on doing business in China.
This week’s turmoil suggests that Trump is no longer willing to let Musk walk both sides of the geopolitical line. The removal from the Pentagon briefing may be a warning shot.
Meanwhile, Musk is playing defence. “I look forward to the prosecutions of those at the Pentagon who are leaking maliciously false information to NYT,” he posted on X. “They will be found.”
In Trump’s second term, loyalty may still count—but proximity to China might matter more.
According to Axios, Trump personally intervened to cancel the Tesla CEO’s invite. The reason? Concerns that Musk, whose empire includes deep investments and longstanding relationships in China, posed a conflict of interest. The meeting, originally scheduled for March, was meant to share critical military contingency planning with select individuals. Musk's inclusion raised red flags at the highest level.
Though the White House denied any discussion of war with China was ever planned, the leak set off alarm bells—and heads rolled.
Leak fallout: Suspensions and public denials
Following the leak, Defence Secretary Pete Hegseth suspended two Pentagon officials, Dan Caldwell and Darin Selnick, as part of an ongoing investigation. The New York Times had first reported that Musk would receive the briefing. Trump quickly hit back, calling the story “completely untrue” and labelling it “fake news” on Truth Social.
Still, the decision to cut Musk from the meeting was made shortly after the article was published—suggesting the concerns were very real, regardless of public denials.
Secretary Hegseth later clarified on X, “The fake news delivers again—this is NOT a meeting about ‘top secret China war plans.’ It’s an informal meeting about innovation, efficiencies and smarter production.” Musk, who did attend a separate Pentagon meeting on 21 March, claimed the session was “great” and denied that China came up at all.
A growing rift behind closed doors
Despite his exclusion from the China briefing, Musk continues to wield influence in Trump’s orbit. Vice President JD Vance downplayed the fallout, saying Musk would remain a “friend and adviser,” even as he steps back from a front-line role in Trump’s plans to overhaul federal bureaucracy through the Department of Government Efficiency (DOGE).
But the tone is changing. Trump has acknowledged Musk's potential vulnerability, telling reporters: “Elon has businesses in China, and he would be susceptible perhaps to that.” He added, “Certainly you wouldn’t show [military plans] to a businessman.”
That shift marks a significant departure from earlier in the year, when Trump appeared unconcerned by Musk's private diplomacy—including a meeting with Indian Prime Minister Narendra Modi. “They met, and I assume [Musk] wants to do business in India,” Trump said casually at the time.
‘Kind of pro-China’
Musk has never hidden his admiration for China. He’s praised the country’s work ethic, defended Beijing’s positions on several issues, and refrained from criticising its censorship laws—despite styling himself a “free speech absolutist.” “I’m kind of pro-China,” he once said.
The reason is straightforward: Tesla’s survival is intertwined with China’s market. The company’s Shanghai gigafactory, opened in 2019 with hundreds of millions in loans from Chinese banks, now produces half of Tesla’s global output. It was the first wholly foreign-owned auto plant in the country, and remains Tesla’s largest facility. Last year, while global sales fell, Tesla’s China sales rose by nearly 9%.
“It’s their second most important market and the only market that’s continuing to grow,” said Tu Le, director of market research firm Sino Auto Insights.
Musk’s ties run deeper than business. He has longstanding relationships with top Chinese officials, including Premier Li Qiang, who once offered him a Chinese green card.
Tariffs and tension
But the business-political nexus is becoming increasingly fraught. Trump’s aggressive trade war with China has seen U.S. tariffs on Chinese goods soar to 145%, with China responding with a 124.1% rate on American imports. Tesla—caught in the crossfire—has voiced its displeasure.
In a letter to the White House, the company warned: “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.” Musk has echoed this frustration publicly, telling Italy’s Deputy Prime Minister Matteo Salvini: “Ideally… Europe and the U.S. should move to a zero tariff situation.”
He has also taken aim at Trump’s trade team. In particular, Musk called Peter Navarro—a key architect of the tariff strategy—“a moron,” adding that he was “dumber than a sack of bricks.”
Two sources told The Washington Post that Musk personally tried to persuade the administration to soften its tariff approach. His efforts were rebuffed.
A man out of step
As Trump hardens his stance on China, Musk’s closeness to Beijing is increasingly awkward for the administration. While other CEOs maintain cordial but cautious relationships with the Chinese government, Musk has been more effusive—and more vocal.
“[Apple CEO] Tim Cook is not on Twitter talking about how awful USAID is or meddling in European politics,” noted Isaac Stone Fish, CEO of Strategy Risks, a consultancy focused on doing business in China.
This week’s turmoil suggests that Trump is no longer willing to let Musk walk both sides of the geopolitical line. The removal from the Pentagon briefing may be a warning shot.
Meanwhile, Musk is playing defence. “I look forward to the prosecutions of those at the Pentagon who are leaking maliciously false information to NYT,” he posted on X. “They will be found.”
In Trump’s second term, loyalty may still count—but proximity to China might matter more.
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