TALKS between Telsa Inc. and Shanghai authorities over building a local manufacturing plant remain on track, the city government said late Tuesday, easing concerns of a breakdown in negotiations after the U.S. electric carmaker’s chief criticized Chinese trade rules last week.

Tesla’s chief executive Elon Musk had fired off a series of posts on Twitter railing against a claimed unequal playing field in China, which limits foreign ownership of Chinese ventures and imposes tariffs on imported cars.

The outburst raised questions over whether Tesla’s ongoing talks to build a manufacturing facility in China, the world’s largest auto market, had been shelved.

The Shanghai government, however, said communication with Tesla had always been positive and the two sides “had a shared goal” to propel the development of China’s new energy vehicle market, referring to full-electric and plug-in hybrid cars.

“Both sides will keep looking thoroughly at plans in China. Currently the details are still under discussion. Once anything is confirmed we will announce it as quickly as possible,” it said in a statement.

“As Tesla CEO Elon Musk has said openly before, Tesla attaches great importance to its development and plans in China.”

The U.S. firm has been pushing hard to build cars in China, but has hit roadblocks in negotiations with local authorities, in part because Musk is keen to keep full control of any local venture. China currently limits foreign ownership to 50 percent.

Last November Musk said he hoped the plant would be operating within three years, but Tesla and the Chinese authorities have yet to announce any agreement.

China, which is making a major push towards electric cars, does not allow foreigners to establish wholly-owned factories.

(SD-Agencies)