China has banned military and government personnel from using Tesla vehicles. This is due to potential safety risks stemming from data collection by electric carmakers, according to The Wall Street Journal.
Tesla is the latest company to find itself in a heated trade feud between the US and China. This happens When the two meet this week to resume trade talks.
Despite the country’s acceptance of Tesla and production of electric vehicles, Chinese President Xi Jinping is trying to distance his country from foreign technology to promote local businesses.
The China has taken decision due to US restrictions on their companies such as Huawei which is the security risk for them.
Car production in China has long been Tesla’s goal. The company initially confirmed that it is in talks with the Chinese government to open a factory there in the summer of 2017.
China has even relaxed its rules on foreign manufacturers to give Tesla more freedom. Other major manufacturers such as GM and Ford are already producing cars in China under joint venture rules.
A Tesla spokesman did not respond to a request for comment (the company recently closed its press office). Although Tesla referred to the magazine in an earlier statement about data collection.
The move is the latest sign of increasing Chinese control of the US electric carmaker amid tensions with Washington.
Analysts say it closely resembles US action against Chinese telecom company Huawei on national security grounds.
Tesla had strong support from Shanghai when it built its first overseas factory there in 2019. Its sleek 3sedans model was the country’s best-selling electric vehicle before overtaken by much cheaper micro-electric vehicles last year.
Military Security Concerns
Clear military concerns about Tesla are making carmakers aware of a bigger problem as they equip more vehicles with cameras and sensors that capture images of the area around the car.
China’s military restrictions on Tesla come as senior Chinese and US officials hold a controversial meeting in Alaska. This is the first face-to-face meeting since President Joe Biden’s inauguration.
It is not clear whether Tesla’s decision is linked to escalating tensions between the United States and China.