Tesla Faces Setbacks After Spying Concerns Spread Among Chinese Social Media - P...

Tesla Faces Setbacks After Spying Concerns Spread Among Chinese Social MediaTesla

Tesla Faces Setbacks After Spying Concerns Spread Among Chinese Social Media

Aron Chen

posted on March 23, 2021 4:34 pmEditor : Wang Boyuan

Tesla is facing setbacks in China, as America's most valuable electric car manufacturer is on the edge of being regulated by the Chinese government due to concern that its in-car cameras will collect and divulge information.

The Chinese government is restricting certain areas and military personnel from using Tesla vehicles. The Chinese government has also told some of its agencies to warn its employee to be cautious driving Teslas to workplaces as Tesla's in-car camera could spy on drivers' daily activities.

It's no secret that Tesla's vehicles are routinely recording the driving history to better protect drivers' safety, but Chinese officials doesn't like Tesla's smart driving system that the vehicles can track data about where drivers go and how owners use them, and it is also concerning that Tesla could store drivers' data and transfer it to the US.

Tesla's smart driving system works in conjunction with radar and cameras to detect objects ahead of and around the vehicle. Tesla Autopilot equips 8 surround cameras that provide 360 degrees of visibility around the car.

In response, Tesla's CEO Elon Musk has dismissed the concerns by saying his company would be shut down if Tesla's vehicles were used for spying.

Speaking at the China Development Forum held in Beijing on March 20, Musk participated and shared his thought via online conference software that "If Tesla used vehicles to spy in China or anywhere, we would get shun down, it's very important for us to be confidential."

Musk also linked such concerns to the Trump administration calling the Bytedance-owned TikTok a threat to US national security last year.

"Many people were concerned about TikTok. But I think this kind of concern is unnecessary, and we should learn lessons from it."

Musk's statement came hours after a screenshot of an inform letter at a military accommodation complex that banned Tesla vehicles on Chinese social media.

"After investigation and tests, Tesla vehicles can expose the location of targets with in-car technical devices including 360-degree cameras and ultrasound sensors. To ensure the absolute safety of military secrets, military residential areas ban Tesla vehicles from driving inside and parking at the areas. We will also routinely investigate the vehicles entering into our residential areas, we hope every tenants and family members to cooperate with us, " the letter said.

At a press conference, China's Ministry of Foreign Affairs representative answers the foreign press's question concerning the Tesla case, saying China was not aware of the specific case of Tesla spying.

"Any enterprise operating and investing overseas must comply with the laws and regulations of the host country. As long as foreign enterprises come to China to operate and invest in accordance with the law and regulations, China takes a welcoming and open attitude."

Tesla has made significant profits in China in recent years. Notably, its Shanghai Gigafactory has earned strong policy supports in the country. In 2019, the company began making locally-produced Model 3 sedans to take more market shares in the world's largest auto market. It has enjoyed strong government support in recent years.

But Tesla has attracted scrutiny from regulators recently after tons of cases filed by consumers complaining about cars' quality issues, including accidental car fire, battery fire, unintended acceleration, fragile car parts.

Citing Tesla suppliers and Tesla China employees, PingWest published an article on "Tesla China is in chaos, indicating Tesla Shanghai factory is being operated as a "sweatshop," where workers are forced to work long hours to handle the excessive works.

Also, PingWest report indicated that the Tesla Shanghai factory has low-quality control using low-standard car components for its locally produced Tesla Model 3.

On microblogging site Weibo, some Model 3 owners made fun of the car's quality, saying Tesla is well qualified for CCTV's annual 315 Evening Gala, which is to protect Chinese consumers' interests by highlighting companies and businesses that involve counterfeiting, negligence, misleading advertising, consumer fraud, or any kind of unfair business practice.

In response, Chinese regulators have summoned Tesla China senior executives over quality and safety issues, urging the company to strengthen internet management at its Chinese factory to better safeguard consumer rights and interests.

According to figures from the China Passenger Car Association, China is the second-largest market for Tesla behind the US. The electric vehicle maker sold 147,455 vehicles in China last year, accounting for 30 percent of its global sales.