China's People's Daily Highly Praises Tesla
A rare report
On November 16, the third page of People's Daily featured a prominently placed commentary authored under the byline "Hua Ping."(华平) In this article, titled "Viewing the 'Tesla Effect' Through the Lens of 'Annual Production Exceeding 10 Million'", Tesla received significant praise.
"Hua Ping" is not a real individual but a pen name used by People's Daily for specific commentary articles. A similar pen name is "Ren Zhongping (任仲平)," a homophone for "important commentary from People's Daily," which is used for publishing significant opinion pieces. The use of these pen names serves to emphasize the importance and authority of the articles, reflecting the stance and perspectives of China's highest official media outlet.
Commentary articles in People's Daily under the byline "Hua Ping" rarely directly reference specific companies. However, in this particular piece, featured in the "Important News" section", Tesla" not only appears in the article's title but is also acknowledged for its role in the development of China's new energy vehicle (NEV) industry.
The article emphasizes that it was under the direct instructions of President Xi Jinping that China lifted foreign ownership restrictions in the automotive sector, paving the way for Tesla's success in China. It further highlights that Tesla's success in the Chinese market aligns with the global trend of industrial and supply chain integration in the era of economic globalization. This reflects the principles of win-win cooperation and harmonious coexistence, illustrating that collaboration is the right path, while isolation and exclusivity lead to a dead end. Only through win-win cooperation can achievements be made, done well, and taken to greater heights.
The article also highlighted Tesla’s “complete vehicle manufacturing” project as the first wholly foreign-owned new energy vehicle venture in China. It emphasized the “Tesla speed” of starting construction, completing it, and commencing production all within the same year, which provided Tesla with vast development opportunities. This also created a “catfish effect,” compelling Chinese automakers to accelerate their innovation efforts.
According to the article, a key reason for China's new energy vehicle (NEV) annual production surpassing 10 million is the intense competition fostered by an open environment. Facing Tesla’s “catfish effect,” Chinese automakers rose to the challenge, proactively adapted, and embraced change.
Viewing the "Tesla Effect" Through the Lens of "Annual Production Exceeding 10 Million"
By Hua Ping
As China's annual production of new energy vehicles surpasses 10 million for the first time, many are reminded of Tesla. Following the Third Plenary Session of the 20th Communist Party of China Central Committee, restrictions on foreign investment access in manufacturing were fully lifted, showcasing China's confidence in steadily expanding institutional openness.
Openness brings progress, and openness fuels China's path to modernization.
In April 2018, General Secretary Xi Jinping announced the prompt easing of foreign ownership restrictions, especially in the automotive sector.
Three months later, Tesla announced plans to build a factory in Shanghai with a total investment of 50 billion yuan and a planned annual capacity of 500,000 vehicles. By January 2019, Tesla’s Shanghai Gigafactory had broken ground, and by December of that year, its first vehicle rolled off the production line.
As the first wholly foreign-owned new energy vehicle project in China, Tesla's "complete vehicle manufacturing" achieved what came to be known as "Tesla speed"—groundbreaking, construction, and production all in the same year. This not only provided Tesla with vast development opportunities but also created a "catfish effect," spurring Chinese automakers to accelerate innovation.
China's milestone of producing over 10 million new energy vehicles annually owes much to this competitive, open environment. Facing Tesla's "catfish effect," Chinese automakers rose to the challenge, adapting proactively and striving for transformation.
Through open competition, China's auto industry has honed its true capabilities. Today, China has become the world's most dynamic hub for technological innovation in the new energy vehicle sector. In 2023, China's auto exports reached the top globally, with new energy vehicle exports exceeding 1.2 million units—a year-on-year increase of 77.6%.
Starting November 1, a new version of the negative list for foreign investment access came into effect, reducing restricted measures from 31 to 29 items. This reflects China's firm determination to pursue higher levels of openness, enhance its capacity for international cooperation, and gain new competitive advantages globally.
Innovation and Green Milestones
From a foundational perspective, the achievement of "annual production exceeding 10 million" is rooted in the accelerated integration of technological and industrial innovation. A number of Chinese new energy vehicle brands have risen to prominence, transitioning from being peers to global leaders in production, core technology, and intelligent development.
From a developmental perspective, this milestone represents a "green milestone" for the global new energy industry. Marking a new starting point for high-quality growth, it also highlights the rapid growth of new productive forces driven by green development.
Green, low-carbon development is an unstoppable trend. In the first three quarters of this year, China exported 928,000 new energy vehicles, a year-on-year increase of 12.5%. Despite challenges such as tariff increases, global consumers continue to express their love for high-quality products and their commitment to green, low-carbon values.
A Win-Win Journey of Openness
Tesla's rapid growth in sales, fueled by its technological and branding advantages and backed by China's massive consumer market, has driven the rapid development of upstream and downstream supply chains. Today, the localization rate of parts for Tesla’s Shanghai Gigafactory exceeds 95%, with more than 60 suppliers integrated into Tesla's global supply chain.
Leveraging China's comprehensive supply chain and advanced manufacturing capabilities, Tesla's Shanghai Gigafactory produces a complete vehicle every 30 seconds on average. In 2023, Tesla's Chinese factories accounted for over half of its global production, with 36% of that exported.
Tesla's success in China is a process of mutual and multiple wins, aligning with the global trend of industrial and supply chain integration in an era of economic globalization. It embodies the concepts of win-win cooperation and harmonious coexistence.
Today, an increasing number of multinational automakers are leveraging China’s market, technology, and institutional openness to achieve the shift of "manufacturing in China for the world." From Hungary to Spain, Myanmar to Malaysia, and Brazil, Chinese new energy companies are building overseas factories, fostering green cooperation, and driving the green, low-carbon transitions of more countries and regions.
Building a Shared Future
On the evening of November 14 local time, the Chancay Port, a key project of the Belt and Road Initiative in Peru, officially opened. As South America’s first smart green port, it is expected to create over 8,000 direct jobs annually for Peru and generate $4.5 billion in revenue, symbolizing a new maritime corridor from Asia to South America.
From "Chancay to Shanghai," the journey from win-win to multi-win continues.
The future lies in fostering consensus on shared and mutual gains. Chinese modernization, as a path of peaceful development, continues to offer the world new opportunities with its achievements. By upholding the principles of win-win cooperation, China is committed to working with all parties to promote global modernization that leads to peaceful development, mutual benefit, and shared prosperity.
High levels of openness bring great development. Openness not only hones true capabilities but also instills greater confidence in progress. Through numerous challenges and risks, China remains unwavering in its commitment to openness, focusing on doing its own work well, and turning crises into opportunities.
By promoting reform and development through openness, today’s China is more resilient and confident than ever.
Through collaboration and mutual growth, embracing a more open and inclusive mindset, the world can look forward to the next "green milestone" even faster.