Commerce Department confirms Tesla’s discussion with Shanghai government

Shanghai (Gasgoo)- On October 26th, the spokesman of the Commerce Department confirmed that America electric-car maker Tesla Inc. has been in talk with relevant departments of Shanghai municipal government.

According to Wall Street Journal, Tesla has reached an agreement with Shanghai to set up a wholly owned factory in the city’s free-trade zone. However, the automaker still needs to pay for 25 percent import tariff. The two companies were reportedly working on details of the deal’s announcement.

Our Commerce Department responded to the rumor for the first time on October 26. Gao Feng, the department’s spokesman, said that according to their knowledge, Tesla is communicating with Shanghai government, but the spokesman didn't say whether they have reached an agreement. 

“We welcome foreign investments in our country, especially those in high and new technology, energy conservation and environment protection and emerging industries of strategic importance. In adherence to the spirit of the 19th CPC National Congress, our country will ease control over market access and take every effort to create a legalized, international and convenient business environment.” What’s more, Gao also revealed that the US president’s visit to China will bring new opportunities for Sino-US trade.

Industry experts showed different opinions on this matter. On the sidelines of the 2017 SAE-China Congress and Exhibition, Fu Yuwu, president of SAE China, said that he got totally different ideas from the report that Tesla would set up a wholly owned factory in Shanghai’s free-trade zone. “All I can say is that the share ratio for foreign companies will be enlarged.”

However, Dong Yang, executive vice chairman of China Association of Automobile Manufacturers (CAAM), said in the same forum that wholly owned new energy automakers can be established in free-trade zone as early as next year. “The issue of dual-credit scheme will strengthen the promotion of new energy vehicles."

Officials from the National Development and Reform Commission once told the media that foreign electric-car makers’ development in China should be in compliance with the policy and it takes time for policy changes.