Chinese foreign ministry spokesperson Mao Ning

"I'm not aware of the specific situation you mentioned. As a matter of principle, we consistently oppose overstretching the concept of national security and discriminatory actions targeting China," Chinese Foreign Ministry spokesperson Mao Ning said on Friday, in response to a question over media reports claiming that Tesla is preparing for a separation of its China business ahead of a potential merger with SpaceX. 

Tesla executives have been told to prepare for a separation of its China business ahead of a potential merger with SpaceX, the Wall Street Journal reported on ‌Thursday, citing a person familiar with the talks.

Tesla and Space X CEO Elon Musk has refuted the media reports as "fake news."