Retaliation against the US, China targets tech giant Tesla

Retaliation against the US, China targets tech giant Tesla

The American automaker Tesla has been constantly in trouble in China. Since October 2020, Tesla has twice recalled vehicles in China, affecting nearly 85,000 units, due to technical errors.

On April 19, a woman rioted at the Shanghai Auto Show while wearing a T-shirt with the words “Brakes not working” and climbed onto the roof of a Tesla car.

On Chinese social networking sites, many people criticize Tesla cars as poor quality.

Then, the Xinhua News Agency and the People’s Daily published an editorial criticizing the billionaire Elon Musk’s electric car company “ignoring” the interests of Chinese consumers.

Some Chinese commentators have even called on Beijing authorities to expel Tesla from the same 1.4 billion population market as Google.

Tra dua My, China is in the middle of listening to Tesla
The woman made a riot at the Shanghai Auto Show. Photo: Global Times.

Business Insider quoted analyst Anne Stevenson-Yang of investment firm J Capital Research in China commented: “These are not ordinary editorials but an organized anti-Tesla campaign.”

Expert Tu Le – founder of Sino Auto Insights – has a similar opinion. ‚ÄúComplaints on social media are one thing, the state media speak up is completely different. This is clearly a warning to Tesla, “said expert Le.

It is forecasted that China will account for 40% of all electric vehicles delivered worldwide by 2022. Therefore, this is identified as a key market for Tesla. However, as expert Lee Miller, founder of China Beige Book predicted: “We are entering a new era of corporate risk in China”.

According to this expert, in the past, when the Chinese media launched an offensive campaign, businesses only had to apologize. Now, when Beijing attacks, it is very difficult for businesses to survive.

“The only way to survive is to make sure the brand has fully won the trust of Chinese consumers, such as Nike or Adidas,” Mr. Miller said.

China’s crackdown on Tesla is believed to be only a fraction of what American companies will have to see in the future after the US punishes a slew of Chinese companies on behalf of “security protection. nation”.

As early as April, the US Department of Commerce issued sanctions against seven Chinese supercomputers for “involvement in the construction of supercomputers for the Chinese military, to serve efforts”. military modernization destabilizing or weapons programs of mass destruction “.

Earlier, citing national security reasons, the United States had punished dozens of Chinese companies under former President Donald Trump.

The current “black” list of the US includes major Chinese companies such as telecommunications equipment and smartphone maker Huawei, chipmaker SMIC and the largest drone maker. About SZ DJI Technology.

The Chinese side accused the US sanctions move as an unfair competition attempt and would not disrupt Chinese development.



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