[mikechen233]

China enacted a new foriegn investment law. It no longer require joint venture, IP transfers. Tesla is able to use this law to built an wholly owned subsidiary and factory in China. A lot of big autos in China are now buying back their ownership in joint venture, previously they were 50% 50%. BMW now fully owns all their operations in China. Also for 50% 50% joint venture, it actually has benefits for foreign companies because it reduced their capital expenditure and split the risks when Chinese market was not a known factor during the early 2000s. For IP transfers, they would most likely be evaluated against the risk and rewards. It's basically buying market access with IP. Companies don't transfers their best IP, but an outdated version. But for Chinese at that time it's still valuable.