Tesla Pushing Obama Administration On Making Business In China Easy For Automakers

Posted: Aug 31 2015, 8:14am CDT | by , in News | Cars & Vehicles

Tesla Pushing Obama Administration on Making Business in China Easy for Automakers
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  • Tesla pushing Obama administration on making business in China easy for automakers!

The automakers want the US President to talk to the Chinese President about the issue on his visit next month.

The Chinese President Xi Jinping is slated to visit the US next month. Tesla Motors Inc. is pressing the US president to discuss a matter of importance with the Chinese president. Tesla Motors Inc. wants business for automakers to be easier in the Chinese market for them.

China has a policy about not allowing automakers to assemble vehicles on their soil. Unless there is a domestic partner involved China prohibits foreign car makers to make vehicles. The issue has been gaining urgency for Tesla.

Tesla is one of the world’s most renowned electric car makers. But in the past few months electric car start-ups from China have been gaining momentum in the US. The start-ups are backed financially by China.

Tesla believes a joint venture with a Chinese manufacturing puts them at a disadvantage. Several companies produce vehicles in China through joint ventures. Companies such as General Motors and Ford Motors all collaborate with Chinese manufacturers.

According to Tesla in the US the Chinese companies are not liable to venture with domestic companies. The Chinese companies are also free from many trade hurdles that American companies face in China.

Last year tesla struggled in its sales in China. The recent fall of the Yuan also makes it harder to export Tesla vehicles from California to China. Chinese electric car developers such as Faraday Future Inc. & Atieva Inc. can make cars in the US.

The Chinese start-ups have also been hiring electric engineers from Tesla. So Tesla Motors has asked the White House to talk to the Chinese authorities in easing, reported WSJ.

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