Tesla Motors wants Obama to solve the problems faced by American automakers in China due to certain restrictions on foreign businesses.
Tesla Motors has taken a measure to dominate the Chinese auto market. Tesla news exclaimed that the Californian automaker intends to persuade Obama administration officials to pressurize Beijing to address the concerns of the US-based automakers. The company is persuading Obama administration to intercede on behalf of US-based carmakers during an official visit by Chinese President, Xi Jinping, next month.
Tesla news today disclosed that Chinese authorities do not let foreign businesses assemble vehicles in the country without a local collaborator. The local companies do not face such restrictions. The North American organization’s spokesman, Ricardo Reyes, has stated, “China-owned firms are not expected to sell controlling stakes to American companies and are free from other trade hurdles that we face in China?
Tesla Motors news suggested that it has succeeded in the South East Asian region to a certain extent – with one dedicated fan developing his own electrifying infrastructure across the country – the company has suffered from higher levels of competition in recent months from a number of China-supported vehicle makers. The recent depreciation of the second largest economy’s currency against the American dollar also increased the cost of importing vehicles from the plant in California.
The Asian video services provider and smartphone manufacturer, LeTv, has proclaimed that it is pioneering a smart electric car. It has attracted a number of engineering experts from US vehicle makers, including Tesla, which is also facing competition next to home. China’s Wanxiang Group acquired Fisker Automotive, which bankrupted in 2014 and currently ready to restart its operations.
Official sources have informed that Xi Jinping would meet Barak Obama in September, during the first official state visit by Chinese President, who met Barak in California in 2013. Financial issues are expected to be discussed in the meeting, especially depreciation of Yuan and China’s interference in stock markets.
Mr. Obama has also promised to discuss a number of other issues with the Chinese President, such as cyber security and alleged Chinese hacking of American companies and governmental institutions. Industrial specialists believe that if the CEO Elon Musk lobbies in an effective manner, then Mr. Obama would raise the US automaker’s concerns with the leader of China. It is probable that Chinese vehicle makers, who are competing against its interests, would not welcome Tesla’s intent.
Tesla’s officials should take measures to contact the White House administration and share the American automobile community’s grievances with them; otherwise, it might suffer in the corporate world.
The restrictions from Beijing have refrained foreign businesses to operate in China without a local partner. This has produced additional challenges for manufacturers. The fluctuations in the currency and economic conditions also stirred up the environment among companies and shareholders. It is up to White House now to convince the other party to reduce these restrictions.
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