Youxia X (image: CarNewsChina.com)
Tesla Motors is complaining about the Chinese restrictions on US carmakers and is asking th White House for help in form of "pressure Chinese President Xi Jinping to make it easier for U.S. automakers to operate in China, during his state visit to the U.S. next month."
According to the article, foreign manufacturers need to pick joint venture partners to assemble vehicles in China. This is important due to taxes and incentives for New Energy Vehicles, we believe.
On the other hand, Chinese companies in US don't have such restrictions.
The second part of the article is about new players emerging in China, which could compete with Tesla, like Youxia Motors's Youxia X or the just-announced LeTV electric car. If any of them succeed in China, it's likely due to the fact that Tesla is not on equal grounds with these companies because of Chinese restrictions against U.S. automakers.
Who would not like to see free trade market these days?
With large companies like General Motors giving in to China's restrictive practices, we expect Tesla to have to follow suit at some point soon, but for now Tesla is pushing for a resolution, rather than joining the bandwagon.
Here is what happened with Nissan LEAF in China:
Venucia e30, locally made by Nissan and Dongfeng JV
Source: International Business Times