Tesla benefits from staffing, talent localization strategy in China: vice president

Tesla's strong localization strategy in China has not only boosted operational efficiency but also contributed to global growth, while recent stimulus measures are expected to further enhance market confidence, said Tao Lin, vice head of Tesla.

In an exclusive interview with China Global Television Network (CGTN) during a matchmaking meeting in Chongqing, Tao Lin, vice president of the United States (U.S.)-based automaker, discussed the company's localization efforts and highlighted the positive effects of China's economic stimulus policies on foreign businesses operating in the country.

The vice president attended a matchmaking meeting held during a roundtable meeting between the country's National Development and Reform Commission (NDRC) and U.S. multinational enterprises in southwest China's Chongqing Municipality on Monday, where representatives from over 60 multinational companies from Europe, the U.S., Japan, and South Korea participated in discussions on cooperation and investment opportunities.

She noted Tesla's high level of localization in China, which has led to increased efficiency and effective cost management.

"Over 95 percent of our supply chain is in China, and 99.9 percent of our employees are localized. We find that local teams are highly efficient, and local suppliers respond quickly and efficiently. At the same time, our local team also does an excellent job in cost management and control. That's why I think Tesla has done a great job when it comes to localization, which also contributes to global development," said Tao.

China's central bank, together with the country's top securities regulator and financial regulator, announced in September a raft of stimulus measures, including a 0.5 percentage points reduction in the reserve requirement ratio (RRR) and a one-trillion-yuan (about 140.42 billion U.S. dollars) liquidity injection into the financial market, to promote high-quality economic growth.

When asked about the impact of these policies on American companies in China, Tao emphasized that the stimulus measures have boosted consumer confidence, driving consumption and injecting momentum into companies' future development.

"I think the direct impact on enterprises will be related to market confidence. That said, we need to see consumer confidence rebound, which will ultimately affect consumption trends. Because for any company, the most important thing is that your products are being purchased. Those products need to have a market and need to be accepted by the public. So, confidence is very important. You must have confidence in the market before you can do the back-end research, development and production," she said.

Tesla benefits from staffing, talent localization strategy in China: vice president

As the Spring Festival approaches, north and east China are experiencing a surge in demand for traditional delicacies, including vinegar and intricately decorated steamed buns.

The Laba Festival, which falls on Jan 7, is just around the corner. In celebration, residents in Taiyuan City, capital of north China's Shanxi Province, flocked to a well-known vinegar shop to fill their containers with vinegar - a time-honored tradition marking the occasion.

The Laba Festival, literally the eighth day of the 12th month on the Chinese lunar calendar, is considered a prelude to the Spring Festival, or Chinese New Year.

As a longstanding custom during the festival, locals bring their own containers, mainly large buckets and jars, to fill with freshly made vinegar.

"The tradition of preparing vinegar for the Laba Festival has been passed down through generations. Folks here love buying the freshly made, time-honored brands, because the hot vinegar tastes especially good," said Liu Xiaojing, a staff member at a local vinegar company.

"The vinegar is still hot. I can still feel the warmth. This is an old brand, and I've been eating it since I was a child. It has a long history," said Huo Yanzhen, a local resident.

Steamed buns with colorful patterns are also experiencing a surge in sales in Qingdao City of east China's Shandong Province. These creative buns, a must-have for many families in the area, are flying off the shelves as shops ramp up both online and offline efforts, stocking up to meet the demand of the pre-festival sales boom.

At a local steamed bun shop, workers were busy preparing 3,000 kilograms of fish-shaped buns. These buns are particularly popular during this time of year, as fish symbolize good fortune and wealth in Chinese culture.

"Sales have definitely picked up since New Year's Day. We're selling about 2,000 to 3,000 jin (about 1,000 to 1,500 kilograms) daily, and we expect to sell nearly 100,000 jin (about 50,000 kilograms) over the next month," said Lu Haiyan, the shop owner.

"Older people nowadays don't like food that are too sweet. They prefer traditional Chinese pastries like these, which are made with healthy ingredients. They're good for the body, so we prefer them," said a local resident.

In addition to the offline sales, the shop has embraced online marketing, posting short videos of their decorative buns on social media platforms. 

The Spring Festival, or Chinese Lunar New Year, falls on Jan. 29 this year and the Spring Festival holiday will last until Feb. 4. It is China's most important festival and an occasion for family reunion.

Sales of traditional delicacies surge ahead of Spring Festival