Tesla might have been allowed because it works well for the auxiliary industries in PRC which in turn helps their own EV companies.

Also, a cynical take. If Tesla has something worth copying, it might be easier as well.

Perhaps, but is that a problem? Isn't it a good thing when interests are aligned? Tesla looked at the situation and they are fine with it, otherwise they wouldn't be there.

Allowing majority foreign ownershipnis a process that has been ongoing for years. Every year, more parts of the Chinese economy open up.

Is this a problem? Let me introduce you to the LANDWIND, the chinese copy of Range rover vehicles. Tesla is taking a huge risk, lots and lots and lots of unknowns, for the sake of tapping into China more effectively. https://www.theweek.co.uk/business/61500/landwind-x7-14000-r...

Good, maybe the competition will make auto manufacturers think twice before they cost cut another component.

And in return for that risk, isn't Tesla making a boatload of money?

I don't know why you were downvoted but I don't think it is a problem. Musk also took a call that is profitable in the short/medium run.

It might even be profitable in the longer run as long as the brand image holds like it has been for Apple.

its 'cause the trade war that force China to allowed this. if there is no trade war. do you think China will allowed what have been working for them for the past 40+ years?

China has in fact not been employing the same strategy for 40 years. That would be foolish. Different developmental stages require different strategies. As China's economy matures, the strategy is increasingly changing to that of opening up.

The move to open up their markets, and to allow majority-foreign ownership, began way before the trade war. It was already ongoing in 2014: https://www.bbc.com/news/business-25647808

China signed a major investment deal with the EU last month. China made major concessions. Unlike Trump, who with his "tough on China" tactics only managed to antagonize China and didn't get a proper trade deal, the EU got the sort of concessions that Trump was after, by being properly diplomatic.

This is the problem with the US attitude of treating China as an enemy. I also have no idea where all the "engaging with China is a failed strategy" and crowd comes from: the EU literally showed you that engagement works better than antagonization and coercion! Facts literally show you that China was already opening up before Trump!