Tesla has registered an electric car firm in Shanghai, China.

According to a National Enterprise Credit Information Publicity System filing, the company was registered on May 10. It will focus on electric cars, auto parts, and batteries, listing Teslas Motors HK Limited as the sole shareholder, with Tesla’s region head Zhu Ziaotong as its representative.

Its latest move seeks to protect its competitive advantage in light of China’s recent announcement loosening foreign ownership caps of new energy vehicle companies in the region by 2022. Former rules called for foreign ownership to be capped at 50 percent to protect China’s interests. It also reduces the number of high import tariffs paid by American automakers for producing outside of the country.

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This year, Tesla CEO Elon Musk expressed criticisms at China’s foreign ownership rules, capped by a well-publicized tit-for-tat with President Donald Trump in early March 2018. That exchange saw both men exchange tweets on import policy rules, resulting in a Trump shoutout to Musk during a press conference on steel and aluminum imports and China-U.S. trade deficits.

At the moment, Tesla pays a 25 percent import tariff.

In Tesla’s last earnings conference call, Musk also announced its intentions to launch a Gigagactory in China.

“Maybe next quarter, but not later than fourth quarter for Model Y,” said Musk at the time. “We also expect to announce the location of a Tesla gigafactory in China soon.”

China remains the largest EV market in the world with more than 1 million in 2018 sales projections for electric, hybrid, and fuel cell vehicles. Other notable figures include a 53 percent increase in new-energy cars sold in 2017 over 2016.