Tesla is the poster child for foreign success in China. Can it sustain the goodwill?

Tesla is the poster child for foreign success in China. Can it sustain the goodwill?

The People’s Daily, the mouthpiece of China’s ruling Communist Party, does not offer praise to foreign businesses very easily. But the newspaper broke with tradition over the weekend with an editorial paying tribute to Tesla, the US electric vehicle (EV) maker owned by billionaire Elon Musk, for helping create the domestic EV boom.

The editorial, published under the pseudonym Hua Ping, or “China Comment”, argued that the central government made the right decision in allowing Tesla to set up and fully own one of its so-called Gigafactories in Shanghai, as it led to the company aiding the growth of the domestic EV supply chain. As China celebrates the milestone of producing 10 million EVs this year and becoming the world’s top EV exporter, Tesla should be remembered for its “catfish” role, according to the article, which was widely republished across other media outlets in China.

The article is primarily intended for a domestic audience. It aims to drive home the message that “opening up” is both good and necessary in furthering national interests. The article departs from the typical narrative found in state media, in which the contributions of foreign business are downplayed or completely ignored when promoting China’s achievements.

To some extent, the article takes a jab at those who dislike foreign brands such as Tesla. In recent years, foreign brands have been met in China with increasing scrutiny.

Tesla CEO Elon Musk arrives on stage at an America PAC town hall on October 26 in Lancaster, Pennsylvania. Photo: TNS

Some government compounds at one time banned Tesla vehicles out of fear that the vehicles could be used for spying. Similarly, iPhone owners are often seen as less “patriotic” than those using a handset from Huawei Technologies – despite the fact that Huawei founder Ren Zhengfei has repeatedly called himself an Apple fan.

The editorial’s appearance in the pages of the country’s top newspaper comes as China’s process of “opening up” appears to have hit the buffers, as priorities have shifted to emphasise national security. The topic has become particularly sensitive where big data is involved.

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