Illustration: Chen Xia/Global Times
Elon Musk, co-founder and CEO of American electric vehicle (EV) company Tesla, celebrated the company’s milestone exit from the Shanghai Gigafactory on Monday, posting “congratulations to Giga Shanghai on manufacturing the millionth car!Tesla’s total has now made more than 3 [million].”
Amid supply chain disruptions caused by the COVID-19 pandemic and US decoupling measures, Tesla’s Shanghai factory contributed one-third of Tesla’s total global production in just a few only years of production. The capacity of the Shanghai factory has far exceeded expectations and has become an indispensable linchpin of Tesla’s global ambitions.
Supply chain issues were previously a major concern for Tesla. The company, in Musk’s words, has been going through “supply chain hell” for years. In June, Musk called Tesla’s new factories in Austin, Texas and Berlin “gigantic money-making furnaces.” By comparison, the Shanghai factory has clearly become Musk’s trusted source.
Some Western media earlier claimed that China’s anti-epidemic efforts to tackle the Omicron outbreak in Shanghai had “disrupted Tesla’s second quarter,” but Tesla said in its earnings report that the factory of Shanghai had achieved “the highest monthly vehicle production in history”. in June. In addition, the Shanghai factory’s exports have repeatedly reached new heights. Musk said after Tesla released its earnings report that if nothing unexpected happens, Tesla “could establish a new [output] record in the second half of this year.”
The success of Tesla’s Shanghai factory is a testament to the rapid growth of China’s electric vehicle industry and its unique advantages as a global manufacturing hub. The plant has reached a production milestone despite a host of challenges, which speaks to the stability of the Shanghai-centric Yangtze River Delta supply chain and effectively refutes foreign media attacks on the resilience of the economy. Chinese.
The small US-led clique has pushed for the decoupling of global supply chains, trying to use political coercion to force companies out of the Chinese market. In order to collaborate with this doomed scheme, Western propaganda machines and think tanks have spared no effort to smear China’s manufacturing and supply chains.
For example, the Wall Street Journal in May reported that anti-epidemic measures in Shanghai are “reigniting supply chain issues for American companies” like Apple, GE and Estée Lauder. In June, CNBC claimed that epidemic control measures in Shanghai had added more pressure on the global supply chain.
These pessimists always try to capture any local negative phenomena and exaggerate, in their relentless efforts to portray China as the source of destabilization in the global supply chain. In fact, China has played a key role in supporting the global supply chain. The success of the Tesla factory in Shanghai is not an isolated case. Many other foreign companies benefit from resilient supply chains in China.
According to statistics from the China Council for the Promotion of International Trade, 91% of foreign-funded enterprises maintained or expanded their business scale in China in the second quarter, demonstrating the confidence of foreign-funded enterprises in the strong resilience of the Chinese economy. and supply chain network.
In the process of integrating into the global supply chain, China has established a relatively complete manufacturing system and has become a key player and contributor to the global supply chain, forming a model that is difficult to replicate and to be replaced by other countries. Any rational foreign company would choose the Chinese market. They are increasingly asking the United States to reduce political interference and not to act against the trend of globalization.
The stability and resilience of China’s supply chain will not be overshadowed by political slander. Tesla’s Shanghai factory milestone shows that China is the most resilient link in the global supply chain. This will not change as China continues to improve its new competitive advantage in global supply chains. China will continue to help stabilize the global supply chain in the second half of the year as part of government policy measures aimed at stabilizing the economy, while tackling the impact of COVID-19 through targeted means.
The author is an editor at the Global Times. [email protected]