China is considering relaxing rules requiring foreign auto makers to have a local partner, according to people with knowledge of the situation, a move that could pave the way for Tesla Inc. to manufacture vehicles in the country.
Tesla has long dreamed of planting its flag in China, the world’s biggest market for electric vehicles, but finds itself the only notable auto maker without public plans to manufacture electric vehicles there. Finding a local partner has been a sticking point.
While there has long been talk of easing these rules, U.S. President Donald Trump’s decision last month to launch an investigation into Chinese trade practices likely accelerated discussions, these people said.
