The immediate big winner of the decision would be Tesla, which has already negotiated a site in the Shanghai area to build cars, but has been reluctant to accept a joint venture partner. Enter only in the Chinese market would mean that Tesla could maintain better control of its technology and keep all profits.
Still, that means Tesla would have to pay the entire investment cost too, instead of sharing it with a local partner. . Other automakers have learned to work with their Chinese partners to smooth out possible labor and political problems and invest together in new facilities.
"You do not need to negotiate with any of the parties, but the bad news is that you have to invest 100 percent of your own money," said Yale Zhang, managing director of Automotive Foresight, a Shanghai-based consultancy, referring to Tesla.
In the next few years, the rule demanded by a Chinese partner will be raised for the rest of the automotive industry, according to the planning agency, the National Development and Reform Commission. He said in a statement that he would end the rule this year for the production of new energy cars in China, in 2020 for the production of trucks and other commercial vehicles and in 2022 for all cars made in China.
The sorghum rights are part of an anti-dumping case that had been first disclosed two months ago as tension increased with the Trump administration over US plans for tariffs on imported steel and other goods. China imported $ 957 million in American sorghum last year, using it for cattle feed and to make a popular liquor, baijiu.
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