Implications Of China’s Green Finance Framework for Foreign Manufacturing Enterprises: A Case Study of Tesla’s Gigafactory Shanghai

Abstract

The paper examines how China’s green finance framework affects the sustainable development of manufacturing enterprises, using Tesla’s Gigafactory Shanghai as a representative foreign case. Mainly drawing on Tesla’s official disclosures, such as Impact Reports, Form 10-K, and Investor Day presentations, alongside China’s evolving green finance policies, the study examines how policy-driven incentives, ESG disclosure reforms, and environmental governance mechanisms have indirectly shaped Tesla’s financial performance, compliance practice, supply chain localization and innovation. However, several challenges still exist, including the limited participation of foreign enterprises in domestic green bond markets, fragmented ESG disclosure standards, and uneven green upgrading among local suppliers. To better engage with China’s green finance system, Tesla could consider adopting customized financing strategies, improve the compatibility of its ESG reporting with local standards, and actively support the green upgrading of small and medium-sized suppliers in its supply chain. The findings provide insights into how China’s green finance framework influence the behavior of foreign manufacturing enterprises in emerging economies directly and indirectly.