Tesla, Intel Reject Allegations Of Illegal Mapping Activities In China Amid Spying Claims By Beijing

In the mid of allegations of illegal mapping activities in China, Tesla Inc. TSLA and Intel Corp INTC have firmly denied any involvement.

What Happened: The Chinese Ministry of State Security (MSS) accused an unnamed foreign company, allegedly involved in a smart car project, of engaging in illegal mapping activities and stealing state secrets through a partnership with a local business, reported The Register on Monday.

Tesla’s China Vice President, Grace Tao, took to Weibo to refute the allegations, stating that “Compliance is the bottom line of business operations! Tesla has always believed that compliant intelligence is sustainable intelligence.”

Intel’s Mobileye also issued a statement, asserting that the company had “continuously invested in data compliance and regulatory adherence, including in China, where we operate under the supervision of licensed entities in full accordance with legal requirements.”

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Meanwhile, Taiwan Semiconductor Mfg. Co. Ltd. TSM is facing its own legal issues with the U.S. Department of Commerce. The chipmaker is reportedly under investigation for potentially bypassing export controls to supply chips to Huawei.

Why It Matters: The allegations against Tesla and Intel come amid a backdrop of increasing tensions between the U.S. and China, particularly in the tech sector.

These allegations also follow a series of other challenges for Intel, including a significant drop in its stock price and market share losses, which has led the company to consider selling a minority stake in its Altera unit to raise several billion dollars.

On the other hand, Tesla has been making strategic moves to maintain its position in the Chinese market, including extending its 0% interest loan offer to prevent a decline in sales due to the reduction in purchase incentives.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote