Five Chinese Ministries Schedule Meeting with Tesla Executives to Urge Consumer Protection
Meeting Disclosure on Same Day President Biden Criticized President Xi Jinping
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese authorities summoned the management of Tesla, the world's largest electric vehicle company from the United States, in a Weitan (scheduled interview) format, urging them to protect the rights and interests of Chinese consumers. A scheduled interview is a meeting where Chinese government agencies call in supervised entities and their related personnel to reprimand them and convey demands.
Chinese media including the official Xinhua News Agency reported on the 9th that the State Administration for Market Regulation of China, together with five ministries including the Ministry of Industry and Information Technology, the Ministry of Transport, and the Fire Department of the Ministry of Public Security, jointly held a scheduled interview with Tesla management. According to Xinhua News Agency, Chinese authorities pointed out safety-related issues such as fires in Tesla electric vehicles, sudden unintended acceleration, loss of vehicle control while driving, and touchscreen malfunctions during the scheduled interview.
Chinese media reported that safety accidents such as vehicle fires and loss of vehicle control while driving have frequently occurred in Tesla electric vehicles.
Tengxun News reported that last year alone, 15 incidents related to driver safety issues such as brake failure and automatic sudden acceleration were reported in three models: Model 3, Model X, and Model S, but Tesla has claimed driver fault.
Jiang Xiang, a Chinese automotive industry expert, pointed out, "Tesla is choosing voluntary recalls, which have relatively less negative impact, rather than mandatory recalls that damage the brand image. If quality problems continue to occur, it will affect sales."
In accordance with Chinese authorities' instructions, Tesla conducted a recall earlier this month for about 36,000 Model S and Model X vehicles produced in the United States and imported into China.
The Global Times also reported the scheduled interview on the same day, criticizing Tesla for showing an arrogant attitude in handling safety issues. The Global Times reported that despite consumer complaints about fires and loss of control being raised across China, Tesla has maintained that there are no problems with the vehicles.
Tesla sold about 140,000 electric vehicles in China last year, leading the Chinese electric vehicle market. Tesla is virtually a common adversary of Chinese electric vehicle companies aspiring to rise in the electric vehicle sector.
Meanwhile, some interpret that after U.S. President Joe Biden’s tough remarks on China, Chinese authorities publicly disclosed the scheduled interview with Tesla, suggesting a political message might be embedded.
On the 7th (local time), President Biden criticized Chinese President Xi Jinping in an interview with CBS, saying, "Xi Jinping is very smart and tough. He has no democratic corner at all. This is not criticism but reality." He added, "There is no need to clash with China, but there will be extreme competition with China."
Coincidentally, the State Administration for Market Regulation of China disclosed the scheduled interview with Tesla on its internet homepage that afternoon.
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