The Shanghai municipal government says it will provide a level-playing field for foreign companies. This is after Tesla CEO Elon Musk visited Shanghai and signed a deal with the local authorities on Tuesday. This overseas assembly factory named Gigafactory 3 will integrate functions of sales, research and development, with an annual output of 500-thousand cars. Gigafactory 3 will be the first foreign-owned carmaker in China, benefiting from the country's gradually eased restrictions on the foreign investment in the automobile industry. The government says more pilot policies are on the road.

HUANG OU, DEPUTY DIRECTOR SHANGHAI MUNICIPAL COMMISSION OF ECONOMY & INFORMATION "This 500,000 capacity factory is by far the largest foreign investment project in Shanghai. This is Shanghai's pilot project to echo the central government's call for the removal of foreign equity limits in the auto-mobile manufacturing industry. As to technology transfer, it's a company matter. We don't have intentions to make regulations."