China is prohibiting its military and government personnel from using Tesla vehicles, citing a potential security risk posed by the electric automaker’s data collection, The Wall Street Journal reports. People who work for the military, “state-owned enterprises in sensitive industries,” and other government agencies will be barred from driving a Tesla, the Journal says, citing sources with knowledge of the crackdown.
The decision against Tesla seems to mirror US restrictions against Chinese companies, including smartphone maker Huawei, which it deems a potential security risk. It also could complicate Tesla’s growth in China, considering how government decisions tend to resonate throughout other industries. Tesla had its first profitable year in 2020, thanks in large part to the company’s popularity in the country.