The Chinese government appears to be treating Tesla Inc. as a national security risk (again).
On Wednesday, Bloomberg reported people familiar with the matter said that authorities in Chengdu, a city situated in China's Sichuan province, home to 21 million people, have told local law enforcement to block all Teslas from entering parts of the town that will host the World University Games on Friday. President Xi Jinping is also planning to make an appearance at the event.
For the most part, Tesla CEO Elon Musk and Beijing are believed to have a solid relationship. In May, Musk told Chinese Foreign Minister Qin Gang in Beijing that Tesla opposes "decoupling" and is willing to invest more in China.
Nonetheless, the Chinese government has prohibited Teslas from entering the People's Liberation Army, China's military, bases, citing security concerns related to a series of cameras around the car's exterior, which is used to assist Autopilot.
Teslas were also banned from a coastal Beidaihe district of Hebei province for two months last July ahead of the Chinese Communist Party's annual summer retreat. It appears the ban was due to "national affairs," as Reuters explained at the time.
Musk has stated Tesla's cars did not spy in China or anywhere else, and all data collected is stored on domestic servers. Each vehicle has eight exterior cameras and one in the cabin, allowing for "360 degrees of visibility at up to 250 meters of range," according to Tesla's website.
There was no mention by Bloomberg sources if rivals like BYD Co., Nio Inc., Xpeng Inc., Geely, and Chery Automobile Co. are also experiencing similar restrictions ahead of the World University Games.