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It’s no secret that Elon Musk has been making headlines with his recent trip to China. Musk, the chief executive of American electric carmaker Tesla, has been meeting with government officials and trying to expand his company’s footprint in the world’s most populous nation. It’s an important move for Tesla, as China is expected to soon become the world’s largest market for electric vehicles.

What makes the Chinese market so attractive to electric vehicle makers? One of the key reasons is the sheer size of the country’s population and the number of potential buyers that exist for Tesla’s products. In addition, China has made it a priority to expand its electric vehicle infrastructure, with plans to add 1.5 million charging points by 2020. The country also provides generous subsidies to buyers of electric vehicles, making it even more appealing for potential consumers.

Tesla has already announced that it will build a gigafactory in Shanghai, the first outside of the U.S. This will enable the company to produce their vehicles closer to the customer, ultimately making them more competitively priced in the global market.

It’s not just Tesla that stands to benefit from the burgeoning EV market in China. Local manufacturers such as BYD and BAIC are also seeing success in the country. They have advantages over their foreign counterparts when it comes to government subsidies, but still face competition from Tesla’s deep pockets and innovative technology.

Ultimately, Tesla’s presence in China is beneficial for both sides. It gives the Chinese auto industry access to leading-edge technology and strengthens the country’s ability to compete on a global scale. For Tesla, it presents an opportunity to expand their reach into a larger market, while still having the support of the government.

The EV market in China is growing rapidly, and competition in the space is only going to increase in the coming years. It’s clear that Tesla’s visit to China has put the spotlight on the country’s place in the global electric vehicle market. And, its presence there may be just the beginning of an exciting new era of electrification.