Tesla factory in Shanghai attests to China’s deepening reform

Source:Global Times Published: 2019/1/8 18:43:39

US-based electric vehicle producer Tesla began construction on a $2 billion Shanghai factory on Monday. As China loosened foreign ownership of auto manufacture, the wholly owned subsidiary of Tesla has become the first beneficiary. Tesla CEO Elon Musk called the new factory "Gigafactory 3," expecting it to produce 250,000 electric vehicles per year. 

Tesla registered a car firm in Shanghai in May, signed an agreement to build the factory in July and secured a site in October, finishing the preparation in only seven months. This not only shows Tesla's eagerness to develop the Chinese market, but also reflects China's policy of expanding opening-up and its efficient execution.

Tesla launched its factory in China as the company recognizes the Chinese market's great purchasing power. China is the largest automobile market in the world, producing 28 million cars a year, 11 million more than the annual US output. 

A market in transition, Chinese electric vehicles are competitive as their output and sales surpass other world markets. As China builds up electric charging infrastructure, the country may lead in building an ecosystem for the electric vehicle.

As China unleashes the power of its market, fierce competition will also follow. In addition to Tesla, there are many foreign companies who have strong capital and technical support who want to enter or expand in Chinese market. In the foreseeable future, they will compete with Chinese enterprises. Chinese enterprises are an essential force in the competition. During 40 years of reform and opening-up, Chinese enterprises have competed with foreign companies so as to promote technological progress and grow stronger. During the process of globalization, Chinese enterprises were not afraid of competition. Now they produce first-class products and service and have acquired a solid position in the global industrial chain.

It's impossible for China to shut its doors again. For Chinese enterprises, the crucial challenge is to be open to cooperation and persist in innovation. Only in an open environment can Chinese enterprises be strong and confident.

China has permitted Tesla's sole proprietorship of the factory, which is of great significance in China's history and opening-up and will also positively influence future China-US relations. As Tesla began building its Shanghai factory on Monday, China and the US started a new round of trade negotiations. If the two countries each had 10 such enterprises, China-US relations would be much more stable.

No external interference can change China's policy of deepening opening-up. Since Chinese enterprises can compete with powerhouses in the international market, they will also be capable of competing with foreign companies in the Chinese market. This is why China is confident in further expanding opening-up.

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