April 29th 2024.
Beijing: Tesla, the electric car company owned by billionaire CEO Elon Musk, received good news in China. On Sunday, Musk flew to Beijing to meet with Premier Li Qiang and discuss getting approval for Tesla's vehicles in the country. This was a crucial step for the company as it faced tough competition from local rivals.
In recent months, Tesla had been banned from entering Chinese government-affiliated buildings and military bases due to concerns about data security. However, on Monday, the China Association of Automobile Manufacturers and the National Computer Network Emergency Response Technical Team/ Coordination Centre announced that Tesla had passed their security assessment. This was a relief for the company as they were one of 76 models of intelligent connected vehicles that met China's data security requirements.
The assessment was conducted over several months and tested for compliance in four areas: the anonymisation of facial and other information from outside the car, the default non-collection of in-car data, the in-car data processing, and the conspicuous notification of personal information processing. The association stated that the purpose of the test was to regulate data processing, protect the rights of car users, and create a secure environment for the auto industry.
It was significant that Tesla was included in the list of approved vehicles, especially as Musk had made a surprise visit to Beijing at the same time the announcement was made. This was Musk's second visit to China, which is Tesla's second-largest market. Tesla's Shanghai factory, which opened in 2019, delivered 947,000 vehicles in 2020, a 33% increase from the previous year.
Musk's visit came amid reports that Tesla drivers in China were facing restrictions in government-affiliated buildings and military bases. This was a result of the increasing tensions between the US and China over data security concerns. Chinese electric vehicles and Chinese social media app TikTok have also faced restrictions and bans in the US.
The news of Tesla's vehicles passing the security assessment was welcomed by the Chinese market and analysts. It was seen as a positive step towards easing restrictions on Tesla's vehicles in China. Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, stated that the review would give Tesla owners and fans confidence in driving their cars on the streets of China. He also noted that the review would have an influence on relevant authorities' policymaking, as the China Association of Automobile Manufacturers is a government-backed association.
The approval of Tesla's vehicles also raised hopes for the approval of their Full Self-Driving system, an autonomous driving software that Musk has been lobbying for in China. Premier Li expressed his support for Tesla's operations in China, stating that it was a successful example of trade cooperation between China and the US. He also encouraged more cooperation between the two countries.
Musk's visit to Beijing came at a time when the 2024 Beijing International Automotive Exhibition was taking place. The auto show, which started on Thursday, runs until Saturday. During his meeting with Premier Li, Musk praised the hard work and wisdom of the Chinese team, which has helped make Tesla's Shanghai gigafactory their top performer. He also commented on the progress of electric vehicles in China, stating that he believed all cars would be electric in the future.
The Chinese market continues to show great potential for electric vehicles, with sales increasing by 37.9% in 2020. This accounted for more than 60% of the global total. Premier Li reassured Musk that China's huge market would always remain open to foreign enterprises and that the government would continue to expand market access and improve services to create a better business environment for foreign companies.
Musk expressed his gratitude for the hard work and success of Tesla's team in China. He also stated that it was good to see electric vehicles making progress in the country and that he believed all cars would eventually be electric. As the 2024 Beijing International Automotive Exhibition continues, it is clear that China's commitment to electric vehicles and their support for foreign companies remains strong.
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