All 16 Tesla models that are sold in the country, including Models S and X, were listed as exempt from purchase tax in a document issued by the Ministry of Industry and Information Technology (MIIT).
It was not immediately clear why Beijing decided to exclude Tesla from the tariff list. However, Reuters claimed that the decision was made amid Tesla’s plans to expand in China, with a new facility currently being built in Shanghai.
Tesla’s CEO Elon Musk recently met with high-profile Chinese officials, including the country’s transportation minister. He thanked them for their support and called the nation’s leaders “very thoughtful.”
According to Reuters, China is one of the most important markets for the American electric car manufacturer. Following the exemption, the cost of buying a Tesla in China could be around 99,000 yuan ($13,957.82).
Tesla’s shares gained over 1% on Aug. 30 following the news.
The U.S. President Donald Trump announced a new set of tariffs on $300 billion of Chinese imports in August. China responded with retaliatory tariffs that target a total of $75 billion U.S. goods.