China – Taaye.com https://taaye.com Largest Nonprofit Digital Media Sun, 15 Jul 2018 20:40:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.6 Global Trade Spat Unnerves Plane Makers https://taaye.com/global-trade-spat-unnerves-plane-makers/ Sun, 15 Jul 2018 20:40:19 +0000 https://taaye.com/global-trade-spat-unnerves-plane-makers/

LONDON-Aerospace executives at aircraft manufacturers Boeing Co. and Airbus SE, along with their suppliers, said they are concerned that new trade barriers may increase aircraft manufacturing costs and lead airlines to postpone the purchases

"The aerospace sector thrives in free trade and open global trade," Boeing Chief Executive Dennis Muilenburg said in London on Sunday before the Farnborough International Airshow, the industry's main meeting starting on Monday.

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China presses for lower prices of cancer drugs: Xinhua https://taaye.com/china-presses-for-lower-prices-of-cancer-drugs-xinhua/ Sat, 14 Jul 2018 06:19:42 +0000 https://taaye.com/china-presses-for-lower-prices-of-cancer-drugs-xinhua/

SHANGHAI (Reuters) – China's new health insurance regulator will begin negotiations with domestic and foreign pharmaceutical companies to lower the prices of cancer drugs in an attempt to reduce the financial burden on patients, the Health Ministry said on Saturday. state news agency Xinhua.

The State Health Insurance Administration said it was preparing to include more cancer drugs on its list of eligible drugs for reimbursement, and said that 10 foreign pharmaceutical companies and eight nationals had expressed willingness to work with the authority .

Cancer rates in China have skyrocketed, driven by an increasing number of people over 60, excessive tobacco use among men and exposure to pollution. The National Cancer Center said last year that there were 4.29 million new cases each year and 2.81 million deaths.

Delegates to parliament said in May that the five-year cancer survival rate was only 30 percent in 2015, less than half the US level, and the government has promised to improve that by 15 percentage points by 2030

Improving insurance coverage is one of the biggest challenges facing China as its population ages. It is committed to making medicines and treatments cheaper and easier to get.

A national health insurance system began covering 16 brands of cancer drugs last year, cutting prices by 44 percent on average, Xinhua reported this year.

China also eliminated tariffs on all cancer drugs imported as of May 1, following a decision by Prime Minister Li Keqiang in April.

Report by David Stanway; Edition by Robert Birsel

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U.S. lift ban on suppliers selling to ZTE in China https://taaye.com/u-s-lift-ban-on-suppliers-selling-to-zte-in-china/ Fri, 13 Jul 2018 17:29:44 +0000 https://taaye.com/u-s-lift-ban-on-suppliers-selling-to-zte-in-china/

(Reuters) – The US Department of Commerce UU On Friday, it lifted a ban on US companies selling products to ZTE Corp, allowing China's second largest manufacturer of telecommunications equipment to resume commercial activity. The Commerce Department had said it would lift the ban after ZTE paid a $ 1 billion fine and deposited $ 400 million in a US bank deposit escrow account. UU As part of an agreement reached last month.

FILE PHOTO: In this illustration, taken on April 17, 2018, a ZTE smartphone appears. REUTERS / Carlo Allegri / Illustration / File Photo

"As long as we lift the ZTE ban, the department will remain vigilant as long as we continue to monitor ZTE's actions to ensure compliance with all US laws and regulations." Secretary of Commerce Wilbur Ross said in a statement sent by email.

ZTE did not respond immediately to requests for comments.

FILE PHOTO: A ZTE mobile phone is displayed at the Consumer Electronics Show (CES) in Las Vegas, Nevada, USA. UU., January 8, 2014. REUTERS / Robert Galbraith / File Photo

ZTE, which depends on the USA. UU components for their smart phones and network equipment, they ceased their main operations after the ban was ordered in April. The punishment came after the company made false statements about disciplining 35 employees involved in the illegal shipment of products of US origin to Iran and North Korea, Commerce officials said. ZTE pleaded guilty and settled with Commerce last year for illegal shipments.

On Thursday, ZTE shares in Hong Kong rose 25 percent after Reuters reported that the United States had signed an escrow agreement that paved the way for ZTE to deposit the $ 400 million. The fine of $ 1 billion was sent to the US Treasury. UU Last month.

The $ 400 million will remain in a escrow account for up to 10 years to provide the US government. UU Access to money if ZTE violates the latest agreement.

The June agreement also required that ZTE change its board of directors and administration, and allow site visits without restrictions from the US government. UU Verify that the components of the EE. UU They are being used as claimed.

Now it will work with a suspended suspension of 10 years hanging over your head, which the United States can activate if it finds new violations. The current ban could have lasted seven years.

Report of Karen Freifeld; Edition by David Gregorio

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Apple’s clean energy fund aims to help fight China’s pollution https://taaye.com/apples-clean-energy-fund-aims-to-help-fight-chinas-pollution/ Fri, 13 Jul 2018 05:49:42 +0000 https://taaye.com/apples-clean-energy-fund-aims-to-help-fight-chinas-pollution/

  Watch the exclusive exclusive interview with Apple CEO Tim Cook

Apple is loading its credentials for renewable energy in China.

The iPhone maker said on Thursday it will launch a $ 300 million fund that will identify and invest in clean energy projects in the world's second largest economy.

Apple ( AAPL ) has partnered with 10 of its global suppliers for the fund, whose investments aim to generate enough renewable energy to power the equivalent of nearly one million households in China .

The transformation of China into an economic power in recent decades has made a dent in the country's environment and the health of its people. Repression of pollution has become a priority for the authorities, even if it hinders the economic growth of the country.

The environmental group Greenpeace has warned that the manufacture of electronic products consumes a lot of energy in China and resorts to polluting coal power plants.

Related: Apple is now fully powered by clean energy

Apple's announcement of China's new fund is its latest move that will probably play well with the Chinese government. CEO Tim Cook visits the country frequently, and the company is setting up research and development centers there.

Many Apple products are manufactured in China and then shipped around the world. The country also represents around 20% of the firm's sales.

Now, the company is at risk of getting caught up in the growing trade conflict between Washington and Beijing.

Apple and other major technology firms have trumpeted their commitments to clean energy sources in recent years.

  Apple Solar Panels
Solar panels on the roof of the Apple Park in Cupertino, California.

In April, Apple announced that all of its retail stores, data centers and corporate offices now operate with 100% clean energy. More than 20 of its suppliers have also committed to boost their production for Apple from clean energy sources, according to the company.

Related: Microsoft is buying solar power from the rooftops of Singapore

Apple has invested in China's wind and solar energy industries in the past. But the new fund is separate from the company's previous renewable energy initiatives in the country.

The major component suppliers with which Apple is working in the fund include those of Taiwan Pegatron and Wistron. Deutsche Bank ( DB ) will manage the fund and will also invest in it.

CNNMoney (Hong Kong) First publication on July 13, 2018: 12:58 AM ET

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Sharif prepares to return to Pakistan in the midst of a crackdown on supporters https://taaye.com/sharif-prepares-to-return-to-pakistan-in-the-midst-of-a-crackdown-on-supporters/ Thu, 12 Jul 2018 18:19:42 +0000 https://taaye.com/sharif-prepares-to-return-to-pakistan-in-the-midst-of-a-crackdown-on-supporters/

ISLAMABAD –

Police in Pakistan have allegedly detained hundreds of supporters of former Prime Minister Nawaz Sharif a day before he returned to the country with his daughter, political heir Maryam Nawaz, where they both face arrest

] Members of the Sharif Muslim League-N (PML-N) party say that the "mbadive crackdown" aims to prevent people from organizing a large welcome rally for Sharif in Lahore, where he will land on Friday with his daughter in a commercial flight

Authorities in the province of Punjab, of which Lahore is the capital, say they have not ordered the crackdown, although it is reported that according to the police have made an indeterminate number of arrests in their attempt to prevent riots in the city before Sharif arrived.

An anti-corruption tribunal sentenced the former prime minister and his daughter to 10 and seven years in prison respectively in absentia last Friday for failing to explain how they acquired their expensive accessory erties in London. Sharif is in London, with his children, taking care of his wife who is receiving treatment for cancer.

Sharif has denounced the verdict as politically motivated and accused a disguised military-judicial alliance of trying to keep him away from politics and undermining the integrity of his PML-N party to allow alliance favorites to win the next election nationals of Pakistan on July 25.

The PML-N candidates also alleged that the Pakistani intelligence agency, ISI, is pushing and intimidating them to change their allegiances and compete in the polls. as independent.

A spokesman for the Independent Electoral Commission of Pakistan, which oversees the polls, on Thursday urged candidates to come forward to register complaints if they are forced to intimidate.

The army has strongly rejected the charges of meddling in the democratic process, or silencing the media, to manipulate the polls in favor of the Pakistan Tehreek-e-Insaf (PTI) party led by the famous sportsman Imran Khan. [19659003] "We do not have a political party, we do not have loyalty," the army spokesman said earlier this week. Major General Asif Ghafoor also rejected suggestions that his institution is forcing Sharif supporters to change parties. He explained that the electoral commission requested the army to help organize a "fair and free" election on July 25 and that they are deployed in polling stations across Pakistan to achieve the goal.

Khan, who has been leading legal battles and demanding responsibility for Sharif through street protests, denies that his party is in collusion with the army.

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While Trump expands trade war, China plays well with foreign investors https://taaye.com/while-trump-expands-trade-war-china-plays-well-with-foreign-investors/ Thu, 12 Jul 2018 09:09:47 +0000 https://taaye.com/while-trump-expands-trade-war-china-plays-well-with-foreign-investors/

BEIJING (Reuters) – Long accused of protectionist tactics that make it a difficult place for foreign companies, China is trying to reverse that narrative amid a growing trade war with the United States, injecting huge investments and portraying itself herself as a champion of the opening.

PHOTO OF THE ARCHIVE: A Tesla car loads at a charging station in Beijing, China, on April 18, 2017. REUTERS / Thomas Peter / Photo Archive

But critics argue that despite his attempt to claim moral ground as president of the United States. UU Donald Trump threatens to apply more tariffs to Chinese imports, Beijing's recent measures to make it easier for foreign companies to establish operations also effectively recognize that it has had discriminatory barriers in the market.

This week, China accepted a $ 10 billion petrochemical project by Germany's BASF, which will be the first plant of this type in China to be wholly foreign owned, not a joint venture.

It also approved a huge new factory in Shanghai for US automaker Tesla Inc, and an $ 2.3 billion organic light emitting diode (OLED) plant to be built by Korea's LG Display Co Ltd. South Korea [19659004RespondingthelastadministrationplanofTrupte109throughouta$200millionprofessionalvalueinChinaimportsinVeliveryMinistryofCommerceLiChenggangsaidtheweekdayChinanwouldclosetobusinesses

"I want to emphasize that the Chinese government's attitude of supporting business cooperation between the two countries will not change, its determination to push for reforms and improve the business environment will not change, and its position to oppose the unilateralism and support multilateralism will not change, "Li said at a business forum in Beijing on Wednesday.

"They are going down, we are going up," he said, in an apparent criticism of Trump while borrowing a phrase used by the former First Lady of the United States, Michelle Obama, in the US election campaign. UU In 2016.

FILE PHOTO: A woman looks at LG Electronics' organic light-emitting diode (OLED) TVs, which are made with LG Display flat screens, at her store in Seoul, South Korea, April 26 of 2016. REUTERS / Kim Hong-Ji / File Photo

The recent investment announcements occurred when Prime Minister Li Keqiang visited Germany this week. The two countries signed commercial agreements worth 20 billion euros ($ 23.5 billion), including the BASF agreement.

Chinese state media framed such cooperation in the context of the increasingly bitter trade dispute with Washington.

"Trade war should push China and the EU to appreciate mutual cooperation, because this increasingly scarce cooperation is becoming more valuable," China's nationalist tabloid Global Times said in an editorial on Wednesday.

& # 39; PROMISE FATIGUE & # 39;

As the threats in the trade dispute have increased, so do Beijing's signals of what it means to follow up on the reforms. The Chinese authorities insist that there is no link and that it will open at its own pace. The increase in costs is also frustrating for foreign manufacturers in China.

In recent weeks, China has issued a shorter list of closed areas to foreign investment and is committed to alleviating or eliminating foreign capital in sectors that include banking, insurance, securities, the automobile industry, as well as shipbuilding and aerospace.

But the ad chain comes at a time when there has been a slowdown in foreign investment in China and more vociferous complaints about the market barriers in Beijing and the difficulty of doing business in the second largest economy in the world.

And Beijing is still retaining at least one major acquisition involving foreign companies: the agreement of US chipmaker Qualcomm Inc to buy NXP Semiconductors NV based in the Netherlands. That has been waiting for the approval of China's antitrust regulator for months, which has led to speculation among investors that the deal is being held hostage to the trade dispute with Washington.

Slide show (2 Pictures)

Years of lackluster follow-up by China on its promises of reform have left what many in the foreign business community call "promise fatigue".

Business leaders have been warning that if China does not take real measures to address the lack of reciprocal market opening, it would sow a sense of retaliation among its larger trading partners. And the intransigent, especially in the United States, argued that Beijing would not keep its promises until other countries began to impose costs on Beijing.

The European Union Chamber of Commerce in China President Mats Harborn called Trump's tariffs "hammer approach" on Tuesday but said the root cause of what China has called the "large-scale trade war" "in economic history began in China.

"The reason we are where we are is because the Chinese leaders did not proceed as fast as we wanted as a business community," Harborn said at a press conference.

Some members of the US business community While lamenting the damage caused by Trump's tariffs, they privately say that Beijing's recent emphasis on accelerating reforms may not be a coincidence.

"The tariffs are scathing, the Chinese have less confidence internally than externally, they have never been tested in this way," a US industry source told Reuters, asking not to be identified given the sensitivity of the matter.

Beijing began to downplay Made in China 2025, the state-backed industrial policy that has caused alarm in the West and is at the center of Washington's complaints about the country's unfair business practices.

Propaganda authorities have also issued unusually strict rules limiting local media coverage of the trade war due to concerns that a rampant report could trigger panic and affect their already nervous financial markets, according to state sources Chinese

And European officials have said that Beijing is trying to attract the EU with market access in exchange for backing China against Trump's trade measures, although Europeans, who share US criticism of China but disapprove of tariffs Trump, they have abstained sides.

"By committing to greater openness, I think China hopes it can minimize China's exit from multinational companies," said Louis Kuijs, director of Asia Economics at Oxford Economics based in Hong Kong.

Report by Michael Martina; Additional reports by Elias Glenn and Stella Qiu; Edition of Tony Munroe and Martin Howell

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ZTE shares jump more than 20% as the end of the crippling US threat nears https://taaye.com/zte-shares-jump-more-than-20-as-the-end-of-the-crippling-us-threat-nears/ Thu, 12 Jul 2018 06:09:48 +0000 https://taaye.com/zte-shares-jump-more-than-20-as-the-end-of-the-crippling-us-threat-nears/

  What made ZTE really bad?

ZTE shares rose more than 20% on Thursday after the US government. UU It will announce that the Chinese company will soon eliminate the last major obstacle to eliminate a crippling prohibition. 19659006] ZTE ( ZTCOF ) which manufactures smart phones and telecommunications equipment, has been in crisis mode since the US Department of Commerce. UU It prevented US companies from selling their vital components in April. The measure forced him to stop almost all of his operations and fueled tensions between the Chinese and American governments.

After Beijing intervened, the Trump administration reached an agreement with ZTE to lift the ban in exchange for a series of other punishments, including the review of its top management, the incorporation of a US monitoring team and the payment of a fine of one billion dollars.

Related: China's ZTE appoints new CEO while competing to meet US demands

The agreement also requires ZTE, which employs some 75,000 people, to put $ 400 million in a escrow account.

The Department of Commerce said on Wednesday that it had signed the custody agreement with ZTE and once it receives the money, it will allow ZTE to continue buying parts of US companies. ZTE paid the heavy fine last month and appointed a new CEO and other executives last week.

ZTE should be able to return to business sometime next week, but the "road to recovery will remain difficult," said Edison Lee, an badyst at Jefferies, in a research note.

  zte shanghai may 3
Analysts predict ZTE will be back in business next week as it clears the last hurdle to lift a crippling US ban.

ZTE did not immediately respond to a request for comments.

The US government said it imposed a ban on ZTE in April because the company violated an earlier agreement that punished it for evading sanctions against Iran and North Korea.

Even with the elimination of the ban, ZTE will still have to regain the trust of its customers and customers, put inactive production lines to work and guarantee investors that it can still make healthy profits in the future.

Related: Where is ZTE? Executives leave AWOL at China's big smart phone fair

ZTE is expected to provide guidance on the full impact of the US ban next month and report the second and third quarter earnings that "probably incorporate many unique costs" said Lee. .

ZTE shares on the Hong Kong stock exchange were suspended immediately after the ban was announced in April. They plummeted when they resumed trade last month.

Even with the recovery on Thursday, stocks still fell almost 50% before the suspension.

The company's agreement with the Trump administration has faced resistance from some members of Congress who want to maintain the ban, citing national security concerns.

CNNMoney (Hong Kong) First publication on July 12, 2018: 1:11 am ET

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Stocks fall as trade wars heat up with new tariff threats https://taaye.com/stocks-fall-as-trade-wars-heat-up-with-new-tariff-threats/ Wed, 11 Jul 2018 16:49:41 +0000 https://taaye.com/stocks-fall-as-trade-wars-heat-up-with-new-tariff-threats/

NEW YORK – World stock indexes fell on Wednesday after the Trump administration published a $ 200 billion list of goods that could receive tariffs and China said that I would take reprisals. Energy and industrial companies and manufacturers of basic materials are suffering some of the worst losses.

MAINTENANCE SCORE: The S & P 500 Index lost 18 points, or 0.7 percent, to 2,775 from 12:15 p.m. Eastern Time. The Dow Jones Industrial Average fell 185 points, or 0.7 percent, to 24,734. The Nasdaq compound fell 48 points, or 0.6 percent, to 7,711. The Russell 2000, an index of smaller and more focused companies in the United States, yielded 8 points, or 0.5 percent, to 1,687.

The S & P 500 had risen for four days in a row and closed in a maximum of five months Tuesday.

TARIFF THREATS: The Trump administration proposed a 10 percent tax on imported items, including vacuum cleaners, furniture and auto parts and bicycles, but not US-branded smartphones and laptops. A decision on potential rates is scheduled after August 31.

The Chinese government said it will take "firm and decisive action" if the new tariffs are enacted. Chip makers, which make a large part of their sales in China, suffered some of the worst losses. Nvidia fell 2.3% to $ 247.50 and Micron Technology lost 3.2% to $ 53.94.

Among industrials, Caterpillar lost 2.7% to $ 137.45 and agricultural equipment manufacturer Deere lost 1.7% to $ 142.13.

WHAT'S NEXT? On Friday, USA UU And China applied taxes of 25 percent on $ 34 billion in imports and President Donald Trump said that almost all imports from China, more than $ 500 billion in goods, could be taxed. China imported only $ 130 billion in US goods. UU Last year but could retaliate by other means including regulatory moves and investigations of US companies.

The indexes in Europe and Asia suffered more pronounced losses as investors fear that the worsening trade dispute will hamper the growth of the global economy.

The trade dispute arises from Washington's complaint that Beijing steals or pressures companies to deliver technology and concerns that plans for the state development of Chinese champions in robots and other fields erode American industrial leadership.

ENERGY: oil prices fell after Libya said it would start exporting oil again. The reference price of US crude fell 2.4 percent to $ 72.36 a barrel in New York. Brent crude, used to fix international oil prices, lost 3.4 percent to $ 76.21 a barrel in London.

Chevron sank 2.7 percent to $ 124.10 and ConocoPhillips fell 1.8 percent to $ 70.47.

ABROAD: the CAC 40 in France and the DAX lost 1.5 percent. Britain's FTSE 100 index fell 1.3 percent.

Japan's Nikkei 225 index fell 1.2 percent and South Korean Kospi lost 0.6 percent, while Hang Seng of Hong Kong lost 1.3 percent.

LANDS: The airlines suffered heavy losses. The growth of tariffs in the US UU American Airlines dropped 6.4 percent to $ 36.63 and United Continental fell 3.4 percent to $ 68.87.

PRICE RISE: The Labor Department said that wholesale prices continued to rise in June. Excluding the prices of food and gas, which may be volatile, the department's producer price index has increased by 2.8 percent in the last year. That is the fastest pace in six years and a sign that inflation is recovering after years of weakness.

Investors fear that the Federal Reserve will raise interest rates more quickly as inflation increases. The Fed wants inflation to stay around 2 percent, but recently suggested it will not act too fast if inflation exceeds 2 percent.

SCOPE FOR HEAVEN: Twenty-First Century Fox raised its offer for Europe Sky Pay TV service. Fox already owns 39 percent of Sky and wants to buy the rest, but his rival Comcast intervened with his own offer. Fox says the new offer values ​​Sky at $ 32.5 billion.

Fox lost 3.8 percent to $ 47.90. In the United Kingdom, Sky shares fell 0.5 percent.

BONDS: Bond prices went up. The yield on the 10-year Treasury note fell to 2.85 percent from 2.87 percent.

The fall in bond yields helped utilities earn small profits. Public utility companies tend to pay large dividends, so investors who want to earn income often buy them when bond yields fall. Real estate investment trusts, which also pay large dividends, fell less than the rest of the market.

COINS: The dollar rose to 111.57 yen from 111.28 yen. The edge of the euro fell to $ 1.1722 from $ 1.1745.

___

Marley Jay, AP Market Writer, can be contacted at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/ marley% 20jay

] Copyright 2018 The Associated Press. All rights reserved. This material can not be published, transmitted, rewritten or redistributed.

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Apple fixed bug in iOS 11 that crashed when users entered the word & # 39; Taiwan & # 39; https://taaye.com/apple-fixed-bug-in-ios-11-that-crashed-when-users-entered-the-word-39-taiwan-39/ Wed, 11 Jul 2018 09:20:03 +0000 https://taaye.com/apple-fixed-bug-in-ios-11-that-crashed-when-users-entered-the-word-39-taiwan-39/

Apple silently solved an error in iOS 11 that caused devices configured in the China region to fail when the word "Taiwan" was entered in a text field or the emoji of Taiwan was used, according to a security researcher ( through Axios ).

Patrick Wardle of Digita Security outlined in a blog post how the bug in iOS 11.3 caused instant failures in a variety of native and third-party applications for iPhone and iPad, including iMessages, Facebook and WhatsApp.



Wardle explained that although some aspects of the error were unclear, his research found that a "null" code would cause the lock when a "removeEmoji" operation prompted the system to verify the language / region settings of the device.

The error seems to be self-made, since iOS contains code that hides the emoji of the Taiwanese flag on devices installed in the region of China. Apparently, the code worked for iOS devices established in China, but it caused blockages in devices configured in other regions.

While Apple solved the problem in iOS 11.4.1 after Wardle reported it, the appearance of the error highlights Apple's willingness to appease China when it comes to sensitive political issues. Taiwan and China have had a troubled relationship since the Chinese Civil War, with China long considering that Taiwan is under its sovereignty, even though Taiwan officially recognizes itself as an independent democracy completely separate from mainland China.

Apple has made similar moves in the past to protect its important Chinese market. In July of 2017, for example, Apple eliminated many VPN applications from the App Store in China, following the regulations approved earlier in the year that require these applications to be authorized by the Chinese government.

In December 2016, the company was forced to remove the English and Chinese versions of the application The New York Times from the Chinese App Store, after the Chinese authorities informed it that They were in violation of local regulations.

Another case of Apple's censorship in China included the forced closure of iTunes Movies and the iBooks Store, following the release of the controversial independent film Ten Years that won the award for best film in the Hong Kong Film Awards. The dystopian film imagines Hong Kong in 2025 with the language police, the mini red guards, the radical protest and the uproar of social alienation.

Note: Due to the political nature of the discussion on this topic, the thread of discussion is found in our Policy, Religion and Social Affairs forum. All forum members and site visitors can read and follow the thread, but the publication is limited to forum members with at least 100 posts.

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Welcome to China, Tesla. Now it’s time to cough https://taaye.com/welcome-to-china-tesla-now-its-time-to-cough/ Wed, 11 Jul 2018 08:29:39 +0000 https://taaye.com/welcome-to-china-tesla-now-its-time-to-cough/

Welcome to China, Elon. Let's talk about how this will work.

In the midst of a commercial brewing war, Tesla Inc. has emerged as a clear victim. On Tuesday, CEO Elon Musk signed an agreement with the Shanghai government to open Tesla's first factory outside the US. UU., With capacity to build 500,000 cars per year. The size of the investment was not disclosed, nor was the terms of the agreement. At a briefing on Wednesday, a Shanghai government official said any exchange of technology with Tesla would be "subject to negotiations," in response to a question from Bloomberg News.

Access to China is a panacea for the energetic electric car manufacturer but Musk is entering with a weakened position. On Tuesday, Tesla also signed an electric vehicle investment agreement with the Shanghai Lingang Management Committee, the Lingang Area Development Administration and the Lingang Group. A development and innovation center will also be established. In theory, this is where a technology transfer could occur, even without a joint venture.

That would be contrary to the purpose of having a fully owned company. On the other hand, that is the art of Trump's deal. Why keep Tesla's feet on fire when the Chinese government can?

The Shanghai government also suggested that it could start up the capital and help Tesla with the construction of its factory to make it work as soon as possible. Estimates for a Model 3 production line range between $ 3 billion and $ 5 billion. At its current burning speed, Tesla does not have that kind of capital at its immediate disposal. A Tesla spokesman said construction is expected to start soon, " after we get all the necessary approvals and permits." It will be another two years before cars start rolling on the badembly line and then another two or three years to increase to full capacity.

But the big promises in China come with a price tag. At the National People's Congress earlier this year, Prime Minister Li Keqiang badured the world that there would be no mandatory technology transfers in the manufacturing sector. S haring know-how as a quid pro quo has long been a bone of contention for foreign companies operating under joint ventures, a key way to obtain international funds in the country.

Up, up and out

Monthly sales of new energy vehicles units in China have increased

Source: CEIC


In a working paper of the National Bureau of Economic Research published earlier this year, economists examined data between 1998 and 2007 and concluded that China's policy of requesting transfers of technology "foreign investors for domestic operations" was successful. He discovered that there were many ways in which this happened. For example, when the share of sales of a joint venture increased by 10 percentage points, other companies in the industry were also 10 percent more productive.

For Tesla, who always extolled the virtues of his own technology, this poses a great threat Beijing has defended the cause of new energy vehicles and has supported the sector with policies and subsidies to make China the biggest electric car market. However, it has not produced a champion of its own. Tesla can be the convenient solution.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

To contact the author of this story:
Anjani Trivedi in atrivedi39 @ bloomberg.net

To contact the editor responsible for this story:
Katrina Nicholas in knicholas2 @ bloomberg. net

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