Tesla's new plant in China will eventually have an annual production capacity of 500,000 vehicles, the California-based company has said, dramatically increasing its output. The plant will be the first wholly foreign-owned auto factory in the country.
Tesla's factory is a big deal for Shanghai.
Although obtaining a Chinese green card has become less of a rarity now than it was in the past (1,881 foreigners received one in the past two months compared to the mere hundreds in entire years previously), it is still considered by some to be "one of the most hard tasks in the world".
In June, Trump announced that he would levy $50 billion of Chinese imports with new tariffs. Helping thaw frosty relations between the USA and China, or getting the company's planned $5 billion plant outside Shanghai up and running by the end of the year? Washington later added tariffs to another $200 billion of Beijing's goods in September.
The so-called Gigafactory is China's first wholly foreign-owned vehicle plant, a reflection of China's broader shift to open up its auto market, even amid a trade war with the United States which has seen a rise in tariffs on cars imported from the U.S. Beijing has, according to South China Morning Post, reportedly planned to implement incentives to increase Chinese consumer spending moving forward, hoping to revitalize the slowing economic growth. With no end in sight to the U.S. Ted McKinney, an undersecretary for trade and foreign agriculture sales at the U.S. Department of Agriculture, spoke positively about ongoing discussions this week. China and the USA also just wrapped up three days of talks to resolve trade disputes, and officials from both nations have expressed optimism that progress has been made.