Tesla, a California-based electric vehicle manufacturer, announced on Monday that it had created a research centre and a separate data centre in Shanghai, where it produces Model 3 sedans and Model Y sport-utility vehicles.
According to a statement from Tesla, the auto research and development facility, which is the company's first outside of the United States, employs engineers in software, electronics, materials, and charging.
Tesla's factory data will be stored locally in the new data center for factory production. China's industry ministry announced new draught regulations last month requiring enterprises to maintain critical industry data domestically.
According to the statement, during a global semiconductor chip shortage in recent months, Tesla's research team adjusted some software programs and made tweaks to relieve the pressure brought on by the chip shortage.
Tesla has not stated whether it will utilize fewer chips in its vehicles.
Tesla announced in May that it has set up a facility in China to store car data in order to comply with various regulatory requirements. In the last year, Chinese officials have focused on data policy as part of a broader crackdown on the industry.
China's data security law builds on a cybersecurity law passed in 2017, which was the first major set of laws governing the storage and transit of Chinese-sourced data.