Trump makes rare admission of Musk’s conflicts of interest after Pentagon visit

 

Trump makes rare admission of Musk’s conflicts of interest after Pentagon visit

 

President says plans for potential war with China would not be shared with billionaire due to his business interests

 

\Lauren Aratani and Joseph Gedeon in Washington and agencies

Fri 21 Mar 2025 15.51 EDT

https://www.theguardian.com/us-news/2025/mar/21/musk-pentagon-briefing-china

 

Donald Trump said on Friday that plans for possible war with China should not be shared with Elon Musk because of his business interests, a rare admission that the billionaire faces conflicts of interests in his role as a senior adviser to the US president.

 

Trump rejected reports that Musk would be briefed on how the United States would fight a hypothetical war with China, saying: “Elon has businesses in China. And he would be susceptible, perhaps, to that.”

 

The reference to Musk’s businesses – which include Tesla, an electric vehicle manufacturer trying to expand sales and production in China – is an unusual acknowledgment of concerns about Musk balancing his corporate and government responsibilities.

 

Trump had previously brushed off questions about Musk’s potential conflicts of interest, simply saying that he would steer clear when necessary.

 

The president said that Musk visited the Pentagon on Friday morning to discuss reducing costs, which he has been working on through the so-called “department of government efficiency” (Doge).

 

The defense secretary, Pete Hegseth, said Musk was there “to talk about efficiencies, to talk about innovations”.

 

Musk said while leaving the Pentagon that he was ready to do “anything that could be helpful”. He also refused to answer questions as to whether he received a classified briefing on China as part of the visit.

 

As a key adviser to Trump and the head of Doge, Musk has exercised broad powers in the two months since Trump returned to the White House, conducting mass layoffs and slashing budgets across the federal government. But while the Pentagon was also in line to be a target for job cuts, Musk has yet to play any role there, including in defense intelligence and military operations.

 

A senior defense official told reporters on Tuesday that roughly 50,000 to 60,000 civilian jobs would be cut in the defense department.

 

Musk’s involvement in any US plans or dealings with China would raise not only security concerns but questions over a significant conflict of interest, as he has considerable economic interests in China as the owner of Tesla and SpaceX, which also has contracts with the US air force.

 

In the early hours of Friday morning, Musk denied the reports that he would be briefed on war with China, calling it “pure propaganda” and threatening to find those who leaked the information.

 

“I look forward to the prosecutions of those at the Pentagon who are leaking maliciously false information,” he wrote. “They will be found.”

 

Musk repeated his demand for such prosecutions upon arrival at the Department of Defense on the outskirts of Washington DC on Friday morning. He left the Pentagon about 90 minutes after arriving.

 

A Pentagon spokesperson, asked by email to explain the true purpose of Musk’s briefing given administration denials that it would involve putative war plans with China, referred the Guardian to a statement posted on social media by Hegseth.

 

In a Friday meeting at the White House to announce new air force fighter planes, Trump and Hegseth both firmly rejected reports that Musk was shown any Pentagon plans regarding a potential conflict with China during his visit earlier that day.

 

“They made that up because it’s a good story to make up. They’re very dishonest people,” Trump said about the New York Times reporting. “I called up Pete [Hegseth] and I said: ‘Is there any truth to that?’ Absolutely not, he’s there for Doge, not there for China. And if you ever mentioned China, I think he’d walk out of the room.”

 

Hegseth echoed Trump’s notion that the visit was focused on discussing government efficiency initiatives and innovation opportunities, adding that there were “no Chinese war plans”.

 

“We welcomed him today to the Pentagon to talk about [the ‘department of government efficiency’], to talk about efficiencies, to talk about innovations. It was a great informal conversation,” he said.

 

Hegseth suggested the reporting was deliberately intended to “undermine whatever relationship the Pentagon has with” the Tesla CEO.

 

However, some military experts have still expressed concern about Musk’s level of access to sensitive information.

 

Wesley Clark, retired general and former Nato supreme commander, told CNN in an interview Friday afternoon that the administration has been “cutting a lot of corners in a lot of areas”.

 

“It’s no problem giving him a general impression, we do this for contractors, but the conflict of interest – I’m more interested in his interests abroad, he talks to Putin, he has business in China, he has other considerations and those can impact things,” Clark said.

 

“I’m more worried about Elon Musk coming into the Pentagon and saying ‘I’m high tech and I have smart people in Silicon Valley and these generals do not know anything’. You have got to be really careful about jumping on the next shiny object.”

 

According to a New York Times report, the meeting was set to take place not in Hegseth’s office, where informal meetings about innovation would normally take place, but in a secure conference room known as “the Tank”, which is typically used for higher-level meetings. Musk was to be briefed on a plan that contains 20 to 30 slides and details how the US military would fight a conflict with China.

 

Officials who spoke anonymously with the New York Times and the Wall Street Journal offered up potential reasons why Musk was receiving the briefing. The Times suggested that Musk, in his Doge capacity, might be looking into trimming the Pentagon’s budget and would need to know what military assets the US would use in a potential conflict with China.

 

One source told the Journal that Musk was receiving the briefing because he asked for one.

 

Though Musk has a “top-secret” clearance within the federal government, lawyers at SpaceX advised him in December not to seek higher levels of security clearances, which would probably be denied due to his foreign ties and personal drug use.

 

Associated Press contributed reporting