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Tesla, caught between China and the US

(Agence Ecofin) – The manufacturer of electric cars Tesla, seems caught in the crossfire in the diplomatic and commercial quarrel between China and the United States.

Indeed, Beijing would have decided to ban the use of its ultra-connected cars to its officials and soldiers. China is worried that the data collected by sensors and cameras may be hijacked for espionage purposes. A rather ironic accusation, because it is the same accusation that weighed on several Chinese technology companies and hampered their activities in the United States, especially under the Trump administration.

In the meantime, the boss of Tesla, threatened with being cut off from the very important Chinese market, which would do great harm to the company and its stock market value, quickly stepped up to defend his technology.

In a virtual conference, billionaire entrepreneur Elon Musk tried to reassure Beijing by affirming that no company, American or Chinese, would take the risk of collecting private data and sharing it with their government. ” Whether you are a Chinese or American group, it would cost you dearly to spy “, did he declare ” If Tesla used its cars to spy in any country, the company would be shut down ».

For the American automaker, China is a crucial and promising market. Tesla, which has a plant in Shanghai, already sells a quarter of its total production in the country, and wants to reach 200,000 vehicles sold this year. It is therefore essential to reassure the Chinese authorities.

His position is not unlike that of apps like WeChat and TikTok, put under pressure by the Trump administration last year, also on the grounds of the risk of espionage.

Beijing and Washington seem to be passing the buck to each other, through technology companies.

Ayi Renaud Dossavi

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