Tesla Builds Facility To Store Data Locally In China Amid Heightened Regulatory Scrutiny

Tesla Inc TSLA has put in place a data center on Chinese soil to store data from all vehicles sold on the mainland, CnEVPost reported Tuesday.

What Happened: The Elon Musk-led automaker plans to add more local Chinese data centers in the future, as per CnEVPost.

The move follows an announcement in April by Tesla Vice President Grace Tao who said during the first day of the Shanghai auto show that the company would comply with China's laws and regulations while collecting data in the country.

As per a document from China’s Ministry of Industry and Information Technology seen by CnEVPost, personal information and important data collected and generated in smart car operation in China should be stored in the country as per relevant provisions.

The ministry had previously solicited comments from the public on smart car management regulation.

Why It Matters: This week, China put further curbs on Tesla, banning the company’s cars inside government compounds.

In March, the Chinese government had banned Tesla vehicles inside military and state-owned enterprises citing security concerns due to the presence of cameras on the vehicles.

See Also: Tesla Gives In To Chinese State-Run Media Pressure, Apologizes To Aggrieved Customer

Tao had said in April that consumers can turn off Tesla sensors and those were set up to make driving safer.

Recently, Telegram co-founder Pavel Durov criticized Apple Inc AAPL for bowing down to the Chinese government and highlighted the company’s involvement in censorship and surveillance.

Durov had shared a New York Times article that highlighted how the iPhone maker is preparing to store personal data of its Chinese customers within the country on servers run by a state-owned company. 

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