(MENAFN) Tesla Inc, the electric car maker confirmed its negotiations with Shanghai municipal government to establish a manufactory in the area.
The issues for Tesla is that China charges 25% duty on imported vehicle sales and hasn't permitted any foreign automakers to set up fully owned factories in it.
But government of China reconsidered its decision about factories, to be established in free trade zones, but Tesla would still have to pay the 25% duty on vehicles made in free trade zones.
Tesla said about its statement back in June that it "is working with the Shanghai Municipal Government to explore the possibility of establishing a manufacturing facility in the region to serve the Chinese market. As we've said before, we expect to more clearly define our plans for production in China by the end of the year."
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