Made-in-China Tesla cars wait to be shipped overseas outside its factory in Shanghai. Photo: cnsphoto

Despite the mounting pressure from the US and the EU on Chinese new-energy vehicles (NEVs), China continues to adhere to its opening-up policy, lately by including Tesla cars in East China's Jiangsu provincial government's procurement list for the first time, a move that was confirmed by Tesla staff on Thursday.

The "framework agreement" for the NEV procurement by Jiangsu provincial government departments has been made public, with the Tesla Model Y included in the purchase list. It marks the first time Tesla has been included in a provincial government procurement directory in China, as seen on the Jiangsu government's website.

"This move shows that we are making a fair and diverse choice instead of only listing Chinese NEV brands," Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), told the Global Times on Thursday.

Although some Western countries are levying high tariffs on Chinese NEVs, free trade is not "a situation of mutual closure," Cui noted.

China is the world's the largest automobile market, and the most inclusive one too. "We treat vehicles and companies from all countries equally, without any discrimination. In sharp contrast, some Western countries have placed high barriers to block others' products to protect their own industries," Cui said.

Chinese experts said that the inclusion of Tesla's Model Y signals that China continues to deepen of its opening-up policy and expand market access. 

"This move reflects China's efforts to enhance market access in manufacturing and services by attracting foreign investment in high-end sectors. Also, it shows the Chinese government's recognition of high-quality foreign companies and products," Dong Yan, a senior researcher in global economics and politics with the Chinese Academy of Social Sciences in Beijing, told the Global Times on Thursday.

Tesla delivered 71,007 vehicles in June. In China, the sales volume reached 59,261 units, a 7 percent increase from the previous month, according to data the CPCA released on Tuesday.

Notably, Tesla's stock price has rallied significantly lately. On Wednesday, it rose over 6 percent on the back of better-than-expected second-quarter delivery numbers, marking its seventh consecutive day of price gains and setting the longest winning streak since June 2023, according to thepaper.cn.

Tesla's success in China has positively impacted the NEV sector and driven local technological advancement and industrial upgrades while encouraging increased R&D investment and competitiveness among domestic and foreign companies, according to Dong.

"There are many NEVs included in the list, reflecting the Chinese government's ambition to develop the NEV industry and boost market and investor confidence," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Thursday.

"In future, China's government procurement standards and lists are likely to become more standardized and diverse," Cui said.

Responding to the list, local officials said that the content of the announcement is only a shortlist. Whether Tesla will be purchased depends on users' choice, according to the news outlet news.chengdu.cn.

Jiangsu's procurement list also includes the Aito M7, Avatr 11, Deepal SL03 & S7, Galaxy E8 Executive Edition, Geometry E & G6, Changan UNI-K/Z and other brands.

The Model Y is currently Tesla's most popular SUV, with a starting price of 249,900 yuan ($34,500) in the Chinese mainland market.

Tao Lin, Tesla's global VP, said that this year marks the 10th anniversary of Tesla's first car delivery in the Chinese mainland. The number of Tesla owners in China has exceeded 1.7 million now. Tao said that the Chinese market is a "must" for Tesla, offering unmatched advantages and vast growth potential. 

According to Tao, Tesla has opened over 520 direct stores in 83 mainland cities and its charging network covers 100 percent of the country's provincial capitals and municipalities. Tesla aims to expand its presence and drive industry growth, the Guangzhou Daily reported on Thursday.