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Tesla also asked for exemption for the touch screen of the model3 model.

Us trade officials on Saturday rejected Tesla's request for a 25 per cent tariff exemption for car computer parts used in Chinese-made model3 models, one of more than 1000 vetoes related to China's industrial development plans, foreign media reported.

According to documents submitted by the Office of the United States Trade Representative and reviewed by Reuters, Tesla and other US companies have rejected requests for Chinese-made products (from aircraft parts to biotechnology instruments) because these products are considered to be of "strategic importance" to the made in China 2025 project.

Tesla did not respond directly, and Tesla also applied for a tariff exemption on the central screen of the Chinese-made model3.

The cost of making cars in the United States is also affected by import duties on certain parts from China, the company said in a securities filing on Monday.

These technology import restrictions on China show that the Trump administration has taken a systematic approach to hinder China's development of high-tech industry, which Washington says is detrimental to the development of the United States due to Chinese plagiarism and forced technology transfer.

Made in China 2025, which aims to enhance China's strength in a strategic industry dominated by the United States, is at the core of the trade negotiations and is also a requirement by the United States for changes in China's policy on intellectual property rights.

These industries include new energy and self-driving cars, aerospace, semiconductors, biopharmaceuticals, robotics and artificial intelligence.

Tesla asked for exemption from tariffs on its 3.0autopilot electronic control unit as early as 2018, and the Palo Alto, Calif.-based carmaker warned that specific tariffs would cause economic losses to Tesla.

In a letter on March 15, Stephen Vaughn, an adviser to the Office of the United States Trade Representative, said the agency denied Tesla's request because of concerns that the part would damage the strategic importance of the United States, or products related to "made in China 2025" (Made in China 2025) or other Chinese industrial projects. The Office of the United States Trade Representative sent a separate letter rejecting a request for exemption from an earlier version of the 2.5 autopilot ECU.

It is not clear when it will be posted on the US government website. At the same time, Kawasaki Machinery Manufacturing Corporation (Kawasaki Robotics USA) and Hexcel Corp. Composite panels made in China for all types of Boeing aircraft have also been rejected.

Some semi-finished parts with low technical content have also been added to the list of refused exemption, including the control harness materials produced by Lear's joint venture company in China for the front and rear doors of vehicles; the material composition of the product includes insulated wires, connectors, terminals, tape and conduits.

The Office of the United States Trade Representative rejected 5311 of the nearly 13000 applications for exemption for Chinese products, and more than 1/5 used and rejected Tesla's application on the grounds that it was related to made in China 2025.

It is difficult to find other suppliers in the United States.

Tesla told USTR that it was unable to find a suitable supplier in the United States, adding that "choosing other suppliers will delay model3's listing plan by 18 months, including the purchase of cleaning equipment used in the production line, standard verification of the production line and staff training."

Tesla wrote: for products that are vital to the safety of consumers' lives, as well as products that are important to Tesla's core interests, we have sought help from relevant industry experts before the implementation of the tariff date. And said that it is impossible to achieve outside China. We can't risk our customers' lives to accept supplier parts with design defects. The autopilot component autopilot is also suitable for modelS and X models, including two printed circuit board components. Tesla said the system is responsible for the important components of the autopilot function and the main safety system parts that make up the vehicle.

Other carmakers have sought similar exemptions, but have not received a reply.

At the end of July, GM asked for a 25% tariff exemption on its Chinese-made Buick Unkway models, which accounted for nearly 15% of Buick sales in the United States last year. GM also wants to eliminate tariffs on more than a dozen parts, including ignition buttons and transmission bearings.

Nissan and Chrysler also made the same request for parts exemption. Uber asked for exemption from renting electric bicycles used under its APP.

Even if a trade agreement is reached between China and the United States in the coming weeks, companies are unlikely to be exempted from tariffs in the months or years to come. According to people familiar with the matter, some tariffs are specifically targeted at made in China 2025, which involves industry tariffs and will continue to exist as part of the law enforcement mechanism.

Vice President Mike Pence said on Friday that the way tariffs would be lifted would be part of the mechanism aimed at ensuring that China meets its obligations in any agreement.

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