Tao Lin, Tesla's Vice President, emphasized that Tesla's criteria for selecting suppliers for its global manufacturing hubs are rigorous and impartial, with no bias toward a supplier's country of origin or geographical location. At present, the localization rate for the Model 3 and Model Y produced at the Shanghai Gigafactory has surpassed 95%. This high level of localization enables domestic consumers to buy these vehicles at the most competitive global prices. Tesla works closely with over 400 Chinese supply chain partners, with more than 60 of them having been integrated into Tesla's global procurement network. Nevertheless, Tesla has made the decision to stop sourcing components from Chinese suppliers for vehicles intended for the U.S. market. Additionally, it plans to phase out other Chinese-made components and replace them with alternatives produced outside China within the next one to two years. Tesla's supply chain approach reveals regional differences. While the Shanghai factory focuses on high localization, the U.S. factory is moving toward 'de-Sinicization.' This strategy reflects Tesla's dual aim of addressing geopolitical issues and maximizing commercial benefits.