The Chinese government highlighted the cases of Tesla and BASF as examples of company investments in China, in a report submitted to the World Trade Organization (WTO).

In the first case, Tesla’s Shanghai plant delivered 947,000 vehicles in 2023, more than half of its global production capacity. 

To ponder: Tesla’s global production went from 510,000 units in 2020 to 1 million 845,000 units in 2023.

Company investments in China

In its 2023 report, Tesla highlighted its focus on increasing vehicle production. Also, the company focused on improving manufacturing capacity and delivery capabilities. Another of its goals was to reduce operating costs. In addition, Tesla plans to continue to develop and improve both its vehicles and battery technologies. Finally, the company seeks to vertically integrate and localize its supply chain.

Below is Tesla’s worldwide production, in thousands of units:

• 2020: 510.
• 2021: 930.
• 2022: 1,370.
• 2023: 1,846.

Investments and market

In the same report to the WTO, the Chinese government reported that BASF has 

For BAF, the Asian market will play a key role in its future growth. With a share of around 50%, China is already by far the world’s largest chemical market and is a key driver of growth in global chemical production. 

BASF has a strong production, sales and innovation base in Asia, and in particular in China, which it plans to expand further.

In 2023, BASF completed the further expansion project of the Verbund plant in Nanjing, China, together with its partner Sinopec, to strengthen joint chemical production in China.

The following is BASF’s worldwide capital expenditure trend, in millions of euros:

• 2020: 3,900.
• 2021: 2,400.
• 2022: 4,100.
• 2023: 5,200.

In 2023, 54,000 new foreign-invested enterprises were established in China, a year-on-year increase of almost 40 percent. 

According to UNCTAD’s World Investment Report, China was the second largest recipient of inward FDI globally in 2023. On the other hand, the 2024 Kearney Foreign Direct Investment Confidence Index ranks China third globally. It also ranks first among emerging markets.

Planned economy

According to Fidelity Salem Street Trust, China’s economy has undergone a significant transformation. It went from being a rigidly planned, state-directed economy to an economy that, although partially reformed, continues to adopt more market-oriented policies.

Despite the economic reforms implemented by the Chinese government, such as the reduction of state ownership of enterprises and the establishment of better corporate governance practices, a considerable portion of China’s productive assets continue to be owned or controlled by the government.