Why Did China Give Green Light for Tesla’s FSD?

Tesla vehicles are parked outside of a building at the Zhongnanhai leadership compound in Beijing on Jan. 9, 2018. Mark Schiefelbein/Pool/Getty Images

Commentary

China has begun lifting various restrictions on Tesla electric vehicles (EVs), including allowing the collection of road data for Tesla’s Full Self-Driving (FSD) technology, considered the most autonomous version of an Advanced Driver Assistance System.

Is Beijing’s decision a strategic move to counter the looming U.S.–China trade and technology wars, or is another motive at play?

China Woos US Corporations in New Approach

Following U.S. Secretary of State Antony Blinken’s visit to Beijing and Shanghai on April 24–26, tech mogul Elon Musk visited China on April 28. In contrast to Mr. Blinken, Mr. Musk received a high-profile welcome from Chinese leaders. Chinese Premier Li Qiang praised Tesla as a “successful model” for U.S.–China collaboration.

Wang Hongjun, an assistant professor of political science at the University of Nevada Las Vegas, said on NTD’s “Pinnacle View” program that Beijing is encouraging American companies to ignore the U.S.–China tensions if they still want to do business with China.

“Musk has certainly given Li Qiang ample respect. There were rumors that Musk initially planned to visit India, but he abruptly announced a cancellation and instead flew to meet Li Qiang in China,” he said.

According to Mr. Wang, some Republican and Democrat lawmakers don’t trust Beijing, and the Chinese Communist Party (CCP) is looking for ways to get around it.

“We saw that Blinken’s visit to China yielded no significant outcomes. However, as soon as Musk arrived and met the Chinese premier, some of China’s regulations were immediately lifted,” he said.

He continued: “This can serve as a model for American businesses: if you want to solve problems, don’t go through the White House or official channels, but directly establish personal relationships with Chinese officials, who can help you resolve issues.

“The meeting between Musk and Li Qiang sends a message to many corporate leaders and Wall Street that if you really want to address trade barriers or problems in China, you might want to bypass American officials and fly directly to China to meet with Chinese officials.”

Mutual Support

Independent TV producer Li Jun said on the show that Mr. Musk received special treatment from Beijing compared to Mr. Blinken. After meeting Mr. Musk, the Chinese premier even hosted a dinner for him, whereas Mr. Blinken didn’t receive much hospitality, the commentator pointed out.

“Musk’s visit to Li Qiang was motivated by significant challenges Tesla faced this year, including its first sales decline since 2020, with recent months showing about an 8.5 percent drop. In addition, Tesla’s stock market performance has been poor, wiping out last year’s gains in the first four months, and Wall Street has been eager to short the stock, leading Musk to face a trend of being shut out by Wall Street,” Mr. Li Jun said.

He noted that Li Qiang’s support came at a crucial time and that Tesla’s stock surged by 15 percent on April 29, a day after the premier met with Mr. Musk.

“If FSD-equipped cars could be sold in China, it would benefit Tesla’s market expansion ... a great gift to Musk,” Mr. Li Jun added.

He noted that the Chinese premier is “desperately” trying to retain these enterprises as the United States and Western countries withdraw investments and foreign companies leave China.

“He needs to set an example, and Musk’s visit allowed Li Qiang to declare Tesla as a model of U.S.–China trade cooperation. This implies that American companies in China can also receive favorable policies,” he continued.

“Initially, Li Qiang had personally advocated for bringing Tesla to China, which was a significant political achievement for him. Furthermore, Since Musk’s FSD technology was not yet available in China and the industry was still in its infancy, Li Qiang wanted to cultivate this market sector. The CCP is also interested in Musk’s AI and Starlink technologies, hence the effort to keep him engaged,” Mr. Li Jun added.

AI Weaponization

Guo Jun, editor-in-chief of the Hong Kong edition of The Epoch Times, said on the “Pinnacle View” program that Mr. Musk’s trip to China seemed to be an impromptu decision.

“I felt that China had recently decided to relax restrictions on Tesla’s data transmission, opting to have Baidu assist in the process. This enables Tesla to begin collecting road and traffic data, something unimaginable just two months ago,” she said.

Baidu is China’s largest and most popular search engine, similar to Google in the United States.

According to Ms. Guo, Beijing’s motivations appear twofold: first, to prepare for a trade war as European Union countries and the United States impose restrictions on Chinese EVs; second, the CCP is trying to close the gap in AI technology and may use it for military purposes.

“Despite the rise in production and exports, the prospects for China’s EVs look grim,” she said.

“The future of EVs lies in fully autonomous driving—not merely vehicles powered by electric motors but drivable supercomputers. ... As China faces challenges in EV exports and acknowledges emerging trends, it recognizes the importance of introducing Tesla’s FSD to enhance its autonomous driving capabilities,” she added.

Shi Shan, a senior writer and contributor to The Epoch Times, added that autonomous driving requires continual machine learning through massive data input and collection.

“Without data processing training, you cannot speak of autonomous driving. Therefore, if China does not open data access to Tesla, its FSD cannot operate there. By opening up to Tesla’s FSD system, China aims to integrate the entire underlying industry, data, and technology chains. In fact, the sudden rise of China’s EVs is closely tied to Tesla.

“Without Tesla’s high-priced electric cars, which generate significant profits, China’s EV industry chain would not have been established if Tesla’s EVs had not entered Shanghai,” Mr. Shi commented.

He went on to say that what the CCP probably has in mind is AI weaponization using FSD technology.

Ms. Guo agreed with this point of view, saying that the significance of AI-driven, fully autonomous driving technologies primarily lies in their military applications.

“Unmanned vehicle weapons are expected to determine the outcomes of future wars, and AI-driven autonomous driving is at the heart of this future military application. The United States has made significant advancements in this area with conventional unmanned vehicles, such as drones for army reconnaissance and combat, now commonplace,” she said.

“Moreover, small autonomous unmanned vehicles that support infantry operations and handle weapons and ammunition transport have already been integrated into the military.”

Ms. Guo recalled that in an electronic simulation in 2020, the AI defeated a U.S. senior pilot in a 5–0 sweep.

“The U.S. Air Force has indicated that the F-16 is the easiest fighter jet to retrofit for AI autonomous operation ... retrofitting these could unleash significant potential,” she noted.

“Additionally, autonomous underwater and water-surface vehicles are crucial for future warfare. Currently lagging in autonomous driving technology, China may fall even further behind if the U.S.–China technology war escalates,” she concluded.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.