Tesla CEO, Elon Musk gestured further expansion in China after he met with China’s Foreign Minister Qin Gang on Tuesday as Beijing exhibited its openness to foreign business.
Musk and Qin’s meeting occurs in the midst of continued conflict over technology between the U.S. and China.
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According to a statement from the Chinese foreign ministry, the Tesla CEO is against “decoupling” and is willing to develop business in China even further.
Qin, China’s recent former ambassador to the U.S., said, “Chinese-style modernization,” characterized by a large populace and “common prosperity” will generate “unprecedented growth potential and market demand,” according to an announcement from the Chinese foreign ministry.
Qin went on to say that China’s electric vehicle market “has broad prospects for development” and that China will continue to develop an improved law-based and market-oriented business climate for Tesla and other foreign firms.
Tesla shares climbed five percent soon after markets opened Tuesday.
Washington implemented widespread export constraints on semiconductor equipment and key chips to China, last year. The move could inhibit Beijing’s efforts to increase its domestic industry in a critical technology.
In May, Chinese regulators forbade Chinese-based operators of “critical information infrastructure” from purchasing products from U.S chipmaker Micron.
On Tuesday, the Chinese foreign minister stated it would be in the best interest of both countries and the world if the relationship between the U.S and China was “constructive.”
Musk’s Tuesday’s visit comes in the midst of Tesla facing increased competition and a price war in China. Due to difficult macroeconomic conditions in the world’s second-largest economy, Tesla has been modifying the purchase prices of its cars in China.
Tesla’s largest vehicle manufacturing factory is in Shanghai, and the company intends to develop another local plant to produce its Megapack energy storage system.
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