On Dec. 3, the State Administration of Market Supervision of the Chinese Communist Party announced that it had asked Tesla Shanghai to recall 21,599 Model Y vehicles made in China because Tesla’s design is unsafe for users.
When the news broke, Tesla’s stock price plummeted 6.42%.
On Dec. 4, according to the Wall Street Journal, the Chinese Communist Party (CCP) is controlling two Tesla electric car companies in China.
In 2018, when the US-China trade war broke out, the U.S. tightened tech exports to China. Meanwhile, Xi Jinping is ambitious to make China a future industrial and innovation center of the world.
However, according to commentator Li Muyang, he is not satisfied with China’s new energy products. So he turned his attention to Musk, and they touted him.
The article quoted some CCP officials on the matter; Xi Jinping thought that Musk, born in South Africa, had neutral views and specialized in technology. So the CCP wanted to use Musk in building a new energy power for the CCP.
Commentator Li Muyang said that the CCP was quite enthusiastic about Musk in the early stages. Xi Jinping has revised market access regulations to allow foreign companies to own auto companies independently. At a meeting in 2019, Li Keqiang offered to give Musk a “China Green Card.”
The CCP sent its giant, the Ministry of Industry and Information Technology, to persuade Musk. On the other hand, they let Prime Minister Li Keqiang drive a Tesla in the closed Zhongnanhai leadership district to promote their image.
Insiders revealed that the Chinese government had created conditions for Tesla to open an electric car factory in Shanghai, such as providing Musk with cheap land, low-interest loans, and tax incentives. However, the CCP is not impartial in doing these things either.
According to commentator Li Muyang, in 2018, at talks between China and Musk, Miao Wei, then Minister of Industry and Information Technology, said he hoped Tesla would boost weak local electric vehicle companies to develop together. Miao Wei said that introducing Musk to the Chinese market is like “throwing a predatory catfish into a pond full of slow fish.”
Tesla really is an efficient “catfish.” After entering China, two local Chinese electric vehicle manufacturing companies, Xiaopeng and Weilai, have been “activated.”
Commentator Li Muyang said, in fact, “activation” is just propaganda. Because before Tesla was about to enter China, Xiaopeng and Weilai were very angry and worried about their intellectual property rights being stolen.
During his first two years, Musk also made some economic gains. In 2020 alone, Tesla’s China sales have grown rapidly, with high profits. This contributed to Musk’s status as the wealthiest person in the world.
However, after Xiaopeng and Weilai stabilized the market, Tesla’s business environment in China became difficult. First, consumers and CCP officials criticized the quality of Tesla’s electric vehicles. Then the CCP demanded that Tesla accept the CCP’s oversight of major tech companies.
According to commentator Li Muyang, the fact that Tesla received preferential treatment from the CCP has made some Chinese rival companies unhappy. They used the huge amount of tech data they held to attack Tesla. Notable among them are Internet Company 360 and auto giant SAIC.
The report states that the two companies have asked the Chinese regime to issue policies on national security issues to guard against foreign electric vehicle manufacturers. The goal of these two companies is to target Tesla.
An all-too-familiar trick of the CCP from time to time is that they offer various schemes and benefits to lure and entice foreign companies to invest in China.
Commentator Li Muyang said, after getting what they want, such as tech secrets, CCP companies can copy the products of foreign companies. At this point, the CCP will find ways to destroy or kick foreign companies out of China.
This method by the CCP only takes advantage of people’s consumption needs to benefit a group of people and CCP companies, not for the healthy development of the whole society.