Shanghai Auto Industries

Electric-car maker Tesla Inc. has reached an agreement to set up its own manufacturing facility in Shanghai, according to people briefed on the plan, a move that could help the company gain traction in China’s fast-growing EV market.

China is discussing a plan to allow foreign carmakers to set up wholly owned electric-vehicle businesses in its free-trade zones in a major revision of a fundamental principle governing the country’s auto industry policy since the 1990s, according...

Chinese-owned companies are investing in American businesses and new vehicle technology and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.