China’s Industry Minister Jin Zhuanglong and Tesla CEO Elon Musk “exchanged views” on developing electric vehicles connected to “smart grids” during a meeting in Beijing on Wednesday.
The meeting came at a time when the Chinese Communist Party is trying to revive the interest of foreign investors in the country, given the weak recovery of the Chinese economy, after the end of the ‘Covid zero’ strategy.
Foreign companies say they are concerned about a lack of clarity after police raids on consultants’ offices and rising tensions between Beijing and Washington.
A survey by the British Chamber of Commerce in China revealed that around 70% of companies “are waiting to see” how the political situation in the country develops before making decisions on new investments.
Jin Zhuanglong and Musk “exchanged views on the development of new electric vehicles and smart grid connected vehicles,” according to a statement issued by China’s Ministry of Industry and Information Technology.
The statement did not provide further details. Last year, nearly six million electric cars were sold in China, more than all other countries in the world combined. The size of the Chinese market has led to the rise of local brands, such as BYD, NIO or Xpeng, which now threaten the ‘status quo’ of an industry dominated for decades by German, Japanese and American construction companies.
China was also the site of Tesla’s first factory outside of the United States. On Tuesday, Chinese Foreign Minister Qin Gang told Musk that China’s electric vehicle market “has broad prospects for development,” according to a ministry statement.
“China’s modernization brings unprecedented growth potential and demand, and this includes the new energy vehicle industry. China will continue to promote high-level opening-up and remain committed to creating a law-based international business environment and market-oriented, for companies around the world. world, including Tesla,” added Qin Gang.
Tesla opened the first wholly foreign-owned car factory in China in 2019 after Beijing lifted some restrictions on ownership, aimed at boosting competition and accelerating the development of the industry.
According to the ministry statement, Musk said that Tesla is willing to expand its business in China and that he “opposes decoupling,” referring to fears that the world will be divided into several markets, with incompatible products, as a result of the growing friction between Beijing and Washington.
“The interests of the United States and China are intertwined like Siamese twins,” Musk said during the meeting with the Qin Gang.
Tesla’s Shanghai factory produced more than 710,000 vehicles in 2022, accounting for just over half of the company’s global sales.
In April, Tesla announced it would open a new factory in Shanghai to produce its “Megapacks,” the energy storage batteries used to stabilize power grids and prevent blackouts.
Source: TSF
