Tesla Expands Market Reach in China Following Elon Musk's Unexpected Visit

On the same day, following a meeting between Musk and Chinese Premier Li Qiang, Tesla passed China's data security check, becoming the only foreign intelligent automobile maker to do so

On Friday, I thought It was the end of waves of tech news this week. Yet it seems Elon can’t stop after finding himself (and Tesla) facing increasing competition from intelligent Chinese automobile makers such as NIO and newcomer Xiaomi(which used to be a smartphone maker.) After releasing its first car, SU7, Xiaomi has locked 75000 orders in less than a month.

Today, on Apr.28, Elon Musk paid a surprise trip to China. According to Reuter’s report, a person with knowledge of the matter released that Musk’s trip is “to discuss the rollout of Full Self-Driving software and permission to transfer data overseas.“

After arriving, Musk first met with Ren Hongbin, who is the President of the China Council for the Promotion of International Trade. Ren served in the Commerce Department in his career; he was also the Vice Minister of Commerce until Feb 2022.

Later this afternoon, Musk met with Chinese Premier Li Qiang in Beijing. During the meeting, Li told Musk that Tesla’s development in China is a successful example of China-US economic and trade cooperation.

After the meeting, The China Association of Automobile Manufacturers and the National Computer Network Emergency Response Technical Team/Coordination Center of China (CNCERT/CC) released the "Circular on the Testing of Four Security Requirements for Automotive Data Processing (First Batch)." The models produced by Tesla's Shanghai Gigafactory fully comply with the requirements, making Tesla the only foreign-funded enterprise to meet the compliance criteria.

According to the announcement, Tesla meets the four compliance requirements stipulated in the relevant national laws, regulations, and standards: anonymization of facial information collected outside the vehicle, default non-collection of in-cabin data, in-vehicle processing of in-cabin data, and prominently informing users about personal information processing.

Previously, in 2021, Tesla established a data center in Shanghai to achieve local data storage. Moreover, Tesla introduced third-party authoritative institutions to audit the company's information security management system and has passed the security management system certification.

Passing these requirements means that the restrictions on the entry and parking of Tesla and other intelligent vehicles in various locations (such as government agencies, airports, and some highways) can now be lifted.

Some extra info: how the Chinese Foreign Department report the meeting

On the afternoon of April 28, 2024, Chinese Premier Li Qiang met with Elon Musk, Chief Executive Officer of Tesla, at the Diaoyutai State Guesthouse.

Li Qiang stated that the economies of China and the United States are deeply integrated, with each country having a presence in the other, and both can benefit from each other's development. Tesla's growth in China is a prime example of successful China-US economic and trade cooperation. Facts have proven that equal cooperation and mutual benefit best align with the fundamental interests of both countries and are the common aspirations of both peoples. He expressed hope that the US side would work more in the same direction as China, following the strategic guidance of the two countries heads of state, to promote the continuous and stable development of China-US relations, benefiting the people of both countries and the world even better.

Li Qiang pointed out that foreign-funded enterprises are essential participants and contributors to China's development, and China's super-large-scale market will always remain open to them. China will honor its commitments and continue to make efforts to expand market access and strengthen service guarantees, providing foreign-funded enterprises with an even better business environment and more comprehensive support. This will allow enterprises from various countries to invest in China with peace of mind and better achieve mutual benefit and win-win results.

Musk said that Tesla's Shanghai Gigafactory is the company's best-performing factory, thanks to the diligence and wisdom of the Chinese team. Tesla is willing to further deepen cooperation with China and achieve more win-win outcomes.