Democrat accuses Musk of tanking spending bill over China restrictions

The top Democrat on the House Appropriations Committee accused Elon Musk of tanking a bipartisan spending bill because it included a provision that could limit his businesses' ability to operate in China.

In a Friday letter to congressional leaders, Rep. Rosa DeLauro (D-Conn.) claimed Musk derailed the deal that would have avoided a government shutdown "in order to protect his wallet and the Chinese Communist Party at the expense of American workers, innovators and businesses."

The spending agreement released Tuesday included a bipartisan provision to limit and screen U.S. investments in China, among dozens of other proposals attached to the 1,500-page bill.

As the CEO and largest stockholder in Tesla, Musk has extensive business connections to China. The company operates a major manufacturing plant in Shanghai and has sought to build deeper connections with Chinese companies.

DeLauro cited Tesla's operations in China as a reason for Musk to derail a bill containing limits on investments in the country, and she cited potential issues with technologies such as self-driving cars and long-lasting batteries being made in China.

"It is extremely alarming that House Republican leadership, at the urging of an unelected
billionaire, scrapped a bipartisan, bicameral negotiated funding deal that included this critical provision to protect American jobs and critical capabilities," DeLauro wrote.

"This is particularly concerning given Elon Musk’s extensive investments in China in key sectors and his personal ties with Chinese Communist Party leadership, and calls into question the real reason for Musk’s opposition to the original funding deal."

Musk, who endorsed President-elect Trump and poured millions of his own money into a pro-Trump super PAC, is also the co-leader of the "Department of Government Efficiency" (DOGE), an advisory panel focused on cutting federal spending and the size of the government.

In a torrent of posts on X, the social media platform he owns, Musk tore into the bipartisan spending deal for including hundreds of billions of dollars in spending beyond what is necessary to keep the government open past Friday.

While Musk cited many issues with the bill — its cost, length and inclusion of a lawmaker pay raise chief among them — he did not appear to mention restrictions on investments in China.

"America is headed for disaster, with no money for anything, unless the government overspending is addressed," Musk wrote Thursday on X.