Re:Tesla Strikes Deal With Shanghai to Build Factory in China
by pweissbrod on Monday October 23, 2017 @10:55AM
(#15533612)
So by paying a 25% tariff, developing in china outside "free-trade" zones none of tesla technical manufacturing/design knowledge will be leaked to the government and knockoff competitors?
Good luck w/that.
One can only assume tesla expects some level of compromised proprietary secrets. Calculated risk on some level. Maye they see this as speeding up the inevitable.
Apparently they figure this risk is outweighed by the benefit of employing a manufacturing powerhouse which surpasses their US productions.
> China had previously circulated a proposal that would allow electric-car makers into the country without local partners if they were to locate in the so-called free-trade zones. The government set up the country’s first such zone in Shanghai in 2013, and has since approved 10 more around the country.
> Until now, foreign auto makers have built cars in China through joint ventures with local manufacturers. That allows them to avoid the 25% tariff on autos, but also forces them to split profits, and potentially share technology, with the local partner—something that has tripped up Tesla’s previous efforts to expand there.
My reading of this is, Tesla is okay with the tariff sanctions but doesn't want to share tech or profits with local partners. While that doesn't completely remove the potential IP problem, it does mitigate to a certain degree.