Tesla, BMW score a win for China

Business Standard - - WORLD - BLOOMBERG

Less than a week into Pres­i­dent Don­ald Trump’s trade war with China, global au­tomak­ers have shown there are ways to by­pass the bat­tle and scor­ing a win for Beijing in the process.

Tesla and BMW are among the big­gest po­ten­tial losers from Beijing’s re­tal­ia­tory tar­iffs on car im­ports from the US be­cause much of their production is cen­tered in Amer­ica. They’re now dou­bling down in China: this week, Tesla an­nounced its first fac­tory out­side the US while BMW is poised to be­come the first for­eign man­u­fac­turer to own ma­jor­ity con­trol of a Chi­nese au­to­mo­bile ven­ture. Cars made lo­cally by for­eign brands will dodge im­port levies.

While those deals have taken months — if not longer — to come to­gether, the in­vest­ments by Mu­nich­based BMW and Palo Alto, Cal­i­for­nia-based Tesla back up Beijing’s claim to be con­tin­u­ally open­ing up its econ­omy.

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