Tesla experience center in Shanghai, China Photo: VCG

After US electric vehicle maker Tesla reportedly cut auto prices across its lineup in China by up to 9 percent, Bloomberg was quick to pin the move with "economic slowdown" for China, alleging the "competitive and economic pressures are intensifying" in the country.

Tesla's price cutting is just a business move and should not be used to mark down China's economy. Tesla cut its prices because most material costs are falling and competition from local competitors is increasing, according to the Wall street Journal.

Although they have failed countless times, some in the Western media cannot pass up any opportunity to slander China's economic development. In fact, Tesla has significantly benefited from China's economic growth and the vast market, which has also become the US company's fastest expanding overseas market.

China is the world's largest market for new-energy vehicles (NEVs). The increasingly fierce competition in the market represents the strength of China's NEV sector and the overall manufacturing landscape. It's an indisputable fact that China's economy still has solid fundamentals and strong resilience despite mounting challenges.

Production at Chinese automakers has returned to normal in recent months, after the initial hit to supply chains induced by the coronavirus pandemic. And market demand is also recovering. Retail sales in the passenger car market reached 1.8 million units in July, a year-on-year increase of 20.4 percent, which is the second highest growth rate in the past 10 years.

China's huge market scale is what has made Tesla so successful. The Chinese market means opportunities for the US NEV maker. The capacity of Tesla's Shanghai gigafactory has greatly outperformed expectations and become an indispensable pivot for the company's global ambitions, resolving a major concern for Tesla, supported by China's stable supply chain. 

The success of Tesla's Shanghai plant is a testament to China's fast-growing NEV sector and its unique advantages as a global manufacturing hub. The factory has achieved milestone successes one after another in the past years despite attacks from some ill-willed foreign media against the resilience of the Chinese economy.

Tesla is now China's third best-selling EV maker after domestic brands BYD Motor and SAIC-GM-Wuling, and is the only foreign player in the top 15 list published by the China Passenger Car Association. However, it is facing fierce competition from domestic Chinese automakers. 

In China, Tesla faces competition from domestic companies like BYD, SAIC Motor and Nio, which are also pushing into the European market with more affordable electric vehicles. Investors are closely watching Tesla's performance in China, which is believed to have far more growth potential than Europe or the US.

The stability of China's supply chain and the resilience of China's economy will not be overshadowed by outside political slanders. Tesla's future development is inseparable from the Chinese industrial chain and the Chinese market even as it is facing growing competition from Chinese automakers.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn