China unfair grounds for Tesla?

Tesla is pushing the White House to address Chinese auto-industry rules during President Xi Jinping’s visit to the U.S. next month, according to a Wall Street Journal report.

China bans foreign auto makers from building cars in the country without a Chinese partner. General Motors, Ford Motor and other major auto manufactures produce vehicles in China through joint ventures. Tesla does not have such an agreement.

“The requirement that Tesla establish a joint venture for local manufacturing and other obstacles to our activities, such as much higher import duties in China compared to the United States, put American car companies at a significant disadvantage,” a Tesla spokesman told the Journal.

Tesla has made inroads into the Chinese market since entering in 2014. The company also faces new competition from joint, U.S.-Chinese ventures in the electric vehicle market.

 

Photo: Tesla Motors delivers Model S cars to their first buyers in China on April 23, 2014. (AFP/Getty Images)

 

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  • Grey Warden

    Every other foreign auto company is required to partner up with a Chinese company if they want to sell vehicles in China, so why should Tesla be any different? If you partner up with China, yes they will copy/steal your technology/patents/vehicle designs/etc, but that’s the cost of doing business there. Don’t like it? Don’t do business there. Why Tesla thinks the White House is going to help them sell vehicles in China is beyond me. Their pleas will just fall on deaf ears.

  • Guest

    A company that only exists due to gaming government handouts has no room to cry about protectionism in a foreign country.

  • Steve

    There’s not enough Teslas to meet demand in the US, so I wouldn’t worry too much about foreign markets for now.

 
 
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