Will Tesla Eventually Get Squeezed Out Of China By The Communist Regime?

Jan. 16th, 2022

Image: www.theepochtimes.com

According to a story by The Epoch Times on January 14th, 2022, it talks about Beijing’s national strategy of forced technology transfer meaning that Tesla will eventually be squeezed out of the Chinese market, just like the fate suffered by other Western companies in the past, said Robert Atkinson, president of Washington-based nonprofit Information Technology and Innovation Foundation (ITIF).

“At the end of the day, the strategy for China is pretty clear. It’s that they will use you and then shove you aside,” Atkinson said during a recent interview.”The Chinese strategy for Tesla, I believe is, hey, we’re going to get some benefits from Tesla. But ultimately, we want companies like Geely and the other Chinese EV makers to dominate, not just the Chinese market, but a lot of the world market,” he added.

The Chinese regime is known for requiring foreign companies to enter joint ventures with Chinese companies, many of them backed by the communist regime, in order to obtain their know-how, valuable technology, and intellectual property (IP). Tesla appeared to have dodged such risk when, in 2018, it became the first foreign automaker to set up a wholly-owned factory in China without a Chinese company as its partner. The factory, located in Shanghai, began producing Tesla Model 3s in late 2019.

However, Atkinson said Beijing does get “direct or indirect technology transfer” from Tesla. What’s more, Chinese EV makers are also set to benefit since some of current Tesla workers will eventually switch jobs and work for Chinese EV makers instead, he added. many people and businesses were very surprised when Elon Musk took the massive gamble to set up shop in communist China, as everyone is well aware of the risks of the totalitarian regime simply taking everything from Tesla like they have done in the past with many other companies.

For example, he pointed to two European telecoms companies Nokia and Ericsson, saying how the two firms used to have a large share of the Chinese market before ceding to their Chinese competitors ZTE and Huawei. “I think that’s what we will end up seeing with Tesla at some point. The real question is how long?” Atkinson said. But perhaps more important for all foreign companies to know, Atkinson said, is that China is not giving up on its current methods of obtaining Western technologies.

We all know what a massive company Tesla is and what an incredibly clever businessman Elon Musk is but, the risks of setting up in mainland China are certainly not for the faint-hearted. The stock price as of today for Tesla is  $1050 and it is expected to climb over the next year with the expected massive growth of production so only time will tell just how well Elon Musk has calculated his risk/reward ratio. For more information regarding this story simply click the link: https://www.theepochtimes.com/china-will-use-you-and-then-shove-you-aside-expert-warns-tesla-as-it-tries-to-capture-chinese-market_4212803.html

Editor: Mr Cow / PR: Mini Cow


Edited by:【Himalaya London Club UK】

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