October 21, 2024 at 01:37AM
Tesla has denied allegations of illegal-map making in China, responding to the Ministry of State Security’s claims of foreign firms evading supervision and potentially engaging in espionage. Meanwhile, TSMC is under US investigation for suspected export control violations related to Huawei, emphasizing its commitment to compliance amid ongoing scrutiny.
### Meeting Takeaways:
1. **Tesla’s Response to Allegations**:
– Tesla denied involvement in illegal-map making activities in China following accusations from Beijing that a foreign firm (unnamed, but not explicitly identified as Tesla) engaged in espionage and theft of state secrets associated with a smart car project.
– Grace Tao, VP of Tesla China, emphasized the company’s commitment to compliance, stating that it is essential for sustainable operations.
2. **China’s Position**:
– The Ministry of State Security (MSS) claimed that the foreign entity circumvented regulations and posed a spying risk by potentially controlling sensitive data related to military and key infrastructure.
3. **Mobileye’s Commitment to Compliance**:
– Intel’s Mobileye affirmed its dedication to data compliance and legal adherence in China, underscoring the importance of operating under licensed supervision.
4. **TSMC Under Investigation**:
– TSMC is reportedly under investigation by the US Department of Commerce for allegedly bypassing export controls to supply chips to Huawei, which is prohibited under US regulations.
– TSMC maintains that its export compliance system is robust and highlights their proactive approach towards ensuring adherence to regulations.
5. **Ongoing Compliance Challenges**:
– Despite existing prohibitions, there are concerns about banned products, including advanced technology destined for Huawei, still emerging in China.
6. **Next Steps**:
– The Reg has reached out to both Huawei and TSMC for comments and will provide updates based on their responses.
### Action Items:
– Monitor developments regarding TSMC’s investigation and Huawei’s potential response.
– Continue to strengthen compliance frameworks within affected organizations.
– Stay informed about the geopolitical implications on international business operations, particularly in technology sectors.