Tesla wants White House to pressure Beijing on behalf of US automakers during Obama-Xi summit

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Tesla wants the White House to pressure Beijing on reducing restrictions on US automakers operating in China without a local partner. Photo: Bloomberg

Published: 11:02am, 31 Aug 2015Updated: 12:01pm, 24 Nov 2015

Electric car maker Tesla is pushing the White House to intervene on behalf of United States automakers during an official visit by Chinese president Xi Jinping next month.

China prohibits foreign car brands from assembling vehicles in the country without a local partner. Chinese automakers do not face similar restrictions in the US.

"China-owned companies are not expected to sell controlling stakes to American companies and are free from other trade hurdles that we face [in China]," Tesla spokesman Ricardo Reyes told the Wall Street Journal.

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“The requirement that Tesla establish a joint venture for local manufacturing and other obstacles to our activities, such as much higher import duties in China compared to the United States, put American car companies at a significant disadvantage.”

While Tesla has had some success in China – with one dedicated fan building his own charging network across the country – the firm has faced increased competition in recent months from a number of Chinese-backed electric car start-ups. The recent devaluation of the yuan against the US dollar also makes it more expensive to import vehicles from Tesla's California plant to China.

Chinese video streaming firm and smartphone maker LeTV announced earlier this year that it is developing a smart electric car. The firm has poached a number of engineers from US automakers, including Tesla.

Billionaire Elon Musk's company is also facing competition closer to home. China's Wanxiang Group bought Californian electric car maker Fisker Automotive out of bankruptcy in 2014 and is currently gearing up to restart production.