China may retaliate against Tesla…Stock Price Collapse Appears Inevitable
As the U.S. attacked China day after day, the Global Times, China’s “communist mouth,” hinted that it may retaliate against Tesla.
The Wall Street Journal (WSJ) of the U.S. reported on the 5th that China’s Shanghai Telephone Heavy Industries (ZPMC) port crane installed in the U.S. port contains sophisticated sensors that can track the source and destination of the container.
The U.S. intelligence authorities are reportedly concerned that ZPMC will identify the movement of U.S. military supplies in advance through sensors installed in cranes and take countermeasures in advance.
Referring to the WSJ’s report on the 6th, China’s foreign ministry criticized it as “paradoxious and misleading the public.”
State media outlets have also stepped up. The Global Times warned of retaliation by detailing the WSJ’s report on the 7th.
The Global Times once criticized, “It is not surprising that some U.S. politicians exaggerate the theory of Chinese threats and raise national security issues to suppress Chinese companies.”
The Global Times pointed out that the U.S. continues to impose sanctions on Chinese companies such as Huawei and ZTE as well as investigating ZPMC, warning that “According to U.S. logic, China can take the same action on U.S. products such as iPhones and Tesla cars.”
If the U.S. continues to impose unfair sanctions on Chinese companies and products, citing security threats, it means that it can take retaliatory measures to sanction products of U.S. companies sold a lot in China in the same way.
In particular, the Global Times is the mouth of the Chinese Communist Party. The Chinese government hinted that if the U.S. continues to do so, China could retaliate against U.S. products that are sold a lot in China, such as Tesla’s electric vehicles and Apple’s iPhones.
China prefers to mobilize state-run media to launch a “Balong Desse” (a means of observing public opinion) and then take action by looking at the direction of public opinion.
Apple’s sales in China account for 20% and Tesla’s 22%, respectively. If China takes some action, enormous damage is inevitable.
Apple maintains a good relationship with the Chinese wealthy. Recently, however, Tesla received a warning from China.
China warned that “Musk is breaking his own rice bowl” after Tesla CEO Elon Musk retweeted the news that COVID-19 is likely to have originated at the Wuhan Research Institute in China.
The Global Times warned on the 28th of last month, “Musk’s retweet of an article that COVID-19 may have been leaked from Wuhan’s laboratory is an act that worsens U.S.-China relations and breaks his own rice bowl.”
The expression of breaking his own rice bowl is interpreted as Tesla’s heavy reliance on the Chinese market, such as building a Gigafactory in Shanghai, China.
It warned that if Musk continues to err, he could take some action.
If China retaliates against Tesla against the U.S. attack, Tesla’s stock price will inevitably plunge. This is because Tesla’s sales in China account for 22% of its total sales.
In addition, Tesla is betting on the company’s future in China by building its first overseas Gigafactory in China, the world’s largest electric vehicle market.