Note: This was originally published as the daily newsletter for the Columbia Journalism Review, where I am the chief digital writer. On Monday April 25, Twitter accepted Musk’s $44 billion takeover offer
Elon Musk’s attempt to acquire Twitter for $44 billion has caused some concern among regular Twitter users, including a fear that right-wing trolls may see some of Musk’s remarks promoting unrestrained freedom of speech as an excuse to engage in harassment, and his promise to “authenticate all humans” as a sign that anonymity will no longer be allowed. But some believe the biggest challenge Musk will face if he is successful in acquiring Twitter could come from China, where his interest in protecting free speech could run headfirst into the Chinese government’s desire to control the information that gets distributed about the country. And China has a significant point of leverage over Musk in Tesla, his electric-car manufacturing company.
Tesla and Musk have benefited from some unique concessions in China. Tesla was the first foreign carmaker to own its auto-assembly plant outright (other carmakers were required to partner with local companies, who then owned a majority stake in the factories.) The funding for Tesla’s “Giga Shanghai” plant reportedly included $1.3 billion in loans from Chinese banks, and the plant is the company’s largest, producing almost half a million cars last year, almost half Tesla’s production. China accounted for $14 billion worth of the company’s revenue, a quarter of the total in 2021. Musk has responded by “lavishing praise” on the country in the past, according to the Journal, and has refrained from criticism—including remaining silent on the draconian measures China has taken to halt COVID, after calling milder US restrictions “fascist.”
Twitter under Musk “will need to confront China’s leverage,” the Wall Street Journal wrote. Fergus Ryan, an analyst at the Australian Strategic Policy Institute, told the Journal that China has a record of pressuring businesses to extract political concessions. “There will be lots of opportunities for Beijing to put the squeeze on Musk,” Ryan said. Nina Xiang, founder of the China Money Network, wrote that investors should “expect high drama” between Musk and China. “As the owner of Twitter, which is banned in China, Beijing may feel that it is able to pressure Musk to take down content that it does not like,” she wrote. “If Musk refuses, Beijing could start squeezing Tesla.”
Continue reading “Twitter plus China could equal pressure for Elon Musk”








