As Soon as Musk Arrived in Beijing... Tesla Passes China's Data Security Inspection

Musk's Surprise Visit to Beijing on the 28th, Meeting with Li Chang
First Foreign Company to Pass Data Security Inspection on the Same Day
Local Media: "Overproduction Is Exaggerated... Shows Strengthening Relations"

Elon Musk, CEO of Tesla, who has been struggling due to sluggish electric vehicle sales, made a surprise visit to China on the 28th and met with Premier Li Qiang. On the same day, Tesla's major models became the first foreign-invested enterprises to pass China's data security inspection, signaling a green light for the local launch of the Full Self-Driving (FSD) software.

According to local media including China’s Xinhua News Agency, Musk visited Beijing at the invitation of the China Council for the Promotion of International Trade (CCPIT) and held talks with Premier Li Qiang. Premier Li praised Tesla’s development in China as a successful example of China-US economic and trade cooperation. Musk also expressed to Premier Li his desire to strengthen cooperation with China.

[Image source=AP Yonhap News]

After meeting with Premier Li, Musk wrote on X, "It was an honor to meet Premier Li Qiang," adding, "We have known each other for a long time since the early days in Shanghai." Premier Li first connected with Musk when he was the Shanghai Party Secretary in 2019, the year Tesla began operating its Shanghai Gigafactory.

During this visit, Musk persuaded regulatory authorities to approve the launch of FSD in China to expand electric vehicle sales domestically. Tesla launched FSD in 2020 and has been providing the service in the US and several other countries, but it has yet to receive approval for service launch in China. This is one reason Tesla’s competitiveness lags behind Chinese electric vehicle manufacturers, who already offer autonomous driving features to Chinese drivers in most scenarios.

Meanwhile, the China Association of Automobile Manufacturers and the National Computer Network Emergency Response Technical Team/Coordination Center announced in the “Notification on the Status of the Fourth Safety Requirement Inspection for Automotive Data Processing (First Round)” that Tesla’s Model 3 and Model Y, produced at the Shanghai Gigafactory, have both passed the inspection. This is the first time a foreign-invested enterprise has passed this inspection, raising expectations that Tesla’s FSD launch in China could accelerate. Earlier this month, Musk had stated on the social media platform X (formerly Twitter) that "Tesla may soon enable Chinese consumers to use FSD."

China currently restricts Tesla from collecting sensitive data in certain areas for national security reasons and prohibits the transmission of such data to the US or other foreign countries. Tesla vehicles are banned from entering Chinese military facilities, government agencies, and state-owned enterprises. Access to public parking lots at airports, train stations, and police stations is even more strictly limited. On the other hand, Tesla wants to transmit data to the US to train algorithms necessary for autonomous driving functions.

Musk’s visit comes amid a slowdown in electric vehicle market growth and worsening Tesla performance due to the rise of Chinese competitors. Tesla’s vehicle deliveries in the first quarter of this year totaled 386,810 units, down 8.5% year-on-year?the first decline in four years since the COVID-19 pandemic began in 2020. Tesla’s China sales in the first quarter also fell by 4% during the same period. Additionally, Tesla recently announced plans to cut 10% of its total workforce and has reduced electric vehicle prices in China and the US. After the first-quarter earnings announcement, Musk also revealed plans to expand lower-priced new models.

Within China, Musk’s visit drew attention as it occurred amid Western criticism of “overproduction” in China. The state-run Global Times (GT) reported, "Musk’s visit highlights the importance of the Chinese market to many US companies that are strengthening relations, unlike politicians who always exaggerate anti-China rhetoric." GT explained, "It strongly refutes claims of overproduction in China’s new energy vehicle industry and shows that many foreign investors, including Musk, are focusing on market prospects and investment returns."

This content was produced with the assistance of AI translation services.