The Rising Influence of Rising Affluence

[DewDiligence]

TSLA—The “KFC Call” redux:

https://www.wsj.com/articles/its-getting-riskier-to-do-business-in-china-taiwan-capital-control-yuan-tesla-d3dc88f6

By sharing its technology with China, Tesla jump-started an entire domestic industry. Now, as that industry is beginning to show signs of maturity, Tesla faces increasingly tough domestic competition from Chinese companies.

…China’s population is shrinking and getting older. The official count is in dispute, but demographer Yi Fuxian predicts China’s population will decline to one billion by 2050.

…As China’s economy contracts, the Communist Party will protect the profits of state-owned enterprises, further limiting opportunities for foreign companies.

Soon Beijing won’t need Tesla, and Mr. Musk will face regulatory hurdles and other difficulties.

Emphasis added.