to leave a comment.
Expert: "If you endure until the end, you win? It's too meaningless."
Tesla registers 'voice assistant' service in Shanghai... FSD China launch delayed
Regarding the electric vehicle industry, which is considered a prime example of 'self-mutilating' cutthroat competition within China, an expert warning has emerged that if such competition continues, the ultimate winner could be the American company Tesla.
According to China's Shangguan News on the 23rd (local time), Zheng Yongnian, dean of the School of Public Policy at the Chinese University of Hong Kong, Shenzhen Campus, who was once called President Xi Jinping's 'foreign policy advisor', recently stated in an interview with the media, "If the self-mutilating competition continues in the new energy vehicle industry, the ultimate winner will be Tesla."
He further emphasized, "This kind of competition is collective suicide," and "there will be no winners."
This means that as companies in the new energy vehicle industry try to increase market share through price competition, their profits are decreasing.
He criticized, saying that even if the profits of the top 10 or so auto manufacturers in China are combined, they might not reach that of a single top global company, adding, "Everyone has the same mindset. That the company that endures until the end wins. This is too meaningless."
He also pointed out the herd mentality behind the self-mutilating competition, stating, "When an opportunity arises, various regions quickly follow suit. If a path looks promising, various industrial complexes, funds, subsidies, and investment attraction plans are quickly launched."
He continued, "Local governments do not think independently; if they see others doing something, they also rush to do it."
Regarding China's EV industry, warnings have been issued about insufficient demand and excessive discount competition, and Chinese authorities even summoned officials from major companies like BYD last year to urge them to refrain from discount competition.
Last July, President Xi Jinping himself stepped in, mentioning artificial intelligence (AI), computing power, and new energy vehicles, and questioned, "Should all provinces nationwide develop industries in this direction?"
Amidst this, Tesla completed the regulatory registration process for its in-car 'AI voice assistant' service in Shanghai on the 20th, and state-run media like Global Times reported observations that Tesla is strengthening localization by using Chinese AI models.
Local media have reported that this service will be linked to Doubao, the large language model (LLM) of China's ByteDance (parent company of TikTok).
According to the previously disclosed terms of use for Tesla's in-car voice assistant, some models will be equipped with models from Chinese startup DeepSeek and Doubao, with Doubao primarily handling voice command functions and the DeepSeek model being used for conversations between the user and the device.
Industry analyst Liu Dingding viewed that if multinational companies use local Chinese AI models, it could be a practical approach considering market demand and the requirements of Chinese regulatory authorities.
However, the launch of Tesla's autonomous driving software, 'Full Self-Driving' (FSD), in China is being delayed.
According to Bloomberg, Tesla stated in an earnings call after its Q2 earnings announcement on the 22nd that overall approval for FSD in China has not yet been granted, and it is expected to be completed by the third quarter.
Originally, Tesla CEO Elon Musk expected to receive commercial approval in February, but it has not yet been launched across China.
This reflects the cautious attitude of Chinese authorities towards rapidly developing autonomous driving technology, Bloomberg added.
Newsletter
Get key news delivered to your email every morning
to leave a comment.