The head of US electric car maker Tesla, Elon Musk, expressed his desire to develop his business in China on Tuesday during a meeting with Chinese Foreign Minister Qin Gang in Beijing, according to a Chinese diplomatic statement cited by AFP.

China aims to “create a more market-oriented, rule of law and internationalized economic environment” for foreign companies, Qin told the businessman, according to the statement.

According to Chinese diplomacy, Elon Musk told Qin during their meeting on Tuesday that Tesla “wants to continue to develop its business in China.”

Musk is making his first trip to China since the start of the Covid-19 pandemic.

Visits by international leaders that promote “better understanding of China” and “cooperation leading to mutual benefit” are welcome, Mao Ning, a spokesman for China’s foreign ministry, added on Tuesday.

In April, Tesla announced the construction of a new battery factory in Shanghai.

The plant’s initial capacity will be 10,000 Megapack batteries per year, and production is expected to begin “in the second quarter of 2024,” according to Xinhua news agency.

This will be Tesla’s second factory in the eastern Chinese financial center after its large mega-factory, which began construction in 2019.

It is worth investigating Musk’s ties to China

The relationship between the billionaire and Beijing has raised questions in Washington. In November, US President Joe Biden said that the connections of the head of Tesla with foreign countries “deserve” a thorough examination.

“Tesla continues to aggressively focus on expanding” its presence in China, “which remains the hen that lays the golden eggs,” analysts at investment firm Wedbush Securities said in a note.

According to the China Federation of Automobile Manufacturers (CPCA), sales of electric and hybrid vehicles will double by 2022 to account for more than a quarter of all vehicles sold, an unprecedented level.

Government support for electric vehicles, combined with growing consumer interest, has allowed Chinese companies to dominate the domestic market, the world’s largest automotive market.

Although Tesla remains the world’s largest seller of electric vehicles, the popularity of Chinese brands has grown rapidly in recent years.

At the end of March, Chinese automaker BYD, one of the country’s leading electric car brands, announced that it would increase its net profit fivefold by 2022.

Tesla’s net profit fell significantly in the first quarter due to lower prices, despite strong sales growth.