Several state-owned enterprises in the Shanghai pilot free trade zone have recently procured a batch of Tesla Model Y vehicles for corporate use, marking Tesla's entry into China's government procurement arena, local authorities said.

According to the administration of China (Shanghai) Pilot Free Trade Zone Lingang New Area, the move has demonstrated Lingang's commitment to treating domestic and foreign enterprises equally in government procurement activities.

It also highlights Lingang's ongoing efforts to enhance the business environment and expand openness, said an official with the administration.

Last month, announcements on the government procurement website of the neighboring Jiangsu Province, a major economic powerhouse, confirmed Tesla's entry into the province's new energy vehicle procurement catalog.

According to an official report in April on automotive data security compliance, Tesla was the sole foreign automaker among six companies that had met the specified criteria.

"Tesla's inclusion in multiple government procurement catalogs shows China's equal treatment of domestic and foreign enterprises. An open Chinese market will create more opportunities for international businesses," said Sun Yuanxin, an expert with the Collaborative Innovation Center of China Pilot Free Trade Zone at Shanghai University of Finance and Economics.

In May, Vice Commerce Minister Ling Ji emphasized China's openness to foreign-invested companies participating in government procurement during a roundtable discussion.

The Chinese government is committed to promoting high-standard opening up, expanding institutional opening up and practicing the principle of fair competition, Ling said.

Also in May, Tesla broke ground on a mega factory in Shanghai to manufacture its energy-storage batteries, known as Megapacks. It is the first factory of its kind to be built by Tesla outside the United States and is the company's second plant in Shanghai, following the inauguration of its gigafactory in 2019.