Beijing, China – Tesla CEO Elon Musk met with a top government leader in Beijing, coinciding with the showcasing of the latest electric vehicle models at the Beijing auto show. Chinese Premier Li Qiang expressed hopes for enhanced collaboration between the U.S. and China, citing Tesla’s operations in the country as a successful example of economic cooperation, as reported by China’s state broadcaster CCTV.
Musk’s visit to China provides a contrast to recent tough rhetoric from U.S. officials, including Secretary of State Antony Blinken. Premier Li’s comments also highlight China’s efforts to attract foreign investment to stimulate its economy.
While it remains unclear if Musk will attend the ongoing auto show, Chinese automakers have been actively introducing electric cars in the market, some directly competing with Tesla on pricing. Musk’s visit was reportedly at the invitation of the China Council for the Promotion of International Trade, where he engaged in discussions with its president to explore opportunities for further collaboration.
Tesla has a significant manufacturing presence in Shanghai, catering to both the domestic Chinese market and exports to Europe and other regions. The recent price cuts in China for Tesla’s Model 3 and Model Y followed similar reductions in the U.S., aiming to remain competitive in the market.
The European Union’s probe into Chinese subsidies for the electric vehicle industry could potentially lead to tariffs on Chinese-made electric cars, including those produced by Tesla. The rise in green energy subsidies has led to a transformation in the Chinese auto market, with electric vehicles accounting for a quarter of new car sales last year, impacting the demand for traditional gasoline-powered vehicles.
Foreign automakers like Volkswagen and Nissan are swiftly adapting to this changing landscape by developing new electric vehicle models to capture or regain market share in China, the world’s largest automobile market. The competition in the electric vehicle sector continues to intensify as manufacturers strive to meet the evolving demands of environmentally conscious consumers.