China’s Vice President Han Zheng recently held a high-profile meeting with Tesla CEO Elon Musk, as reported by Chinese state media. The discussion took place ahead of the upcoming inauguration of President-elect Donald Trump, marking a significant diplomatic engagement between the two nations.

The meeting is pivotal in U.S.-China relations, as tensions have risen following President-elect Trump’s campaign to impose substantial tariffs on Chinese imports. In response, Chinese President Xi Jinping has taken the notable step of sending his top envoy, Vice President Han, to attend Trump’s inauguration.

During their conversation, Vice President Han urged Musk “to support the strengthening of economic and trade ties between the two nations,” state-owned outlet Xinhua reported Monday. Han emphasized “the importance of cooperation and invited U.S. companies, including Tesla, to benefit from China’s economic growth”, the report notes.

Xinhua further reported Musk’s response, stating that Tesla is eager to deepen its investment and collaboration in China. Musk also expressed his commitment to fostering U.S.-China economic and trade exchanges, highlighting Tesla’s role as a bridge for bilateral business opportunities.

Han’s visit to Washington, D.C., extended beyond his meeting with Musk. He also engaged with representatives from the U.S.-China Business Council, the U.S. Chamber of Commerce, and other prominent business leaders. These interactions reflect China’s broader strategy of reassuring American business interests and advocating for continued collaboration.

Tesla sold 658,102 EVs in China in 2024, up 9% from 603,664 units in 2023. Tesla’s global sales were down 1% in 2024.

The US automaker launched a refreshed Model Y SUV on January 10 in China ahead of the US and Europe. The electric SUV starts at 263,500 yuan (36,000 USD). Tesla Model Y was the best-selling car in China in 2024, including ICE cars.