(Bloomberg) -- Any sharing of technology by Tesla Inc. with a Chinese partner as part of its expansion in the world’s largest electric-car market is a matter that’s “subject to negotiation,” a Shanghai government official said.

It’s something for Tesla to discuss with its Chinese partner, Huang Ou, deputy head of the Shanghai government’s economy and information technology commission, said Wednesday at an event in the city. Ou was responding to a question on whether the U.S. company would be transferring its technology.

Tesla on Tuesday announced a deal with Shanghai to build its second car-assembly plant in the world in China. Asked about total investment required for the Tesla plant, Huang said it would be the largest ever foreign-invested manufacturing project in Shanghai.

The Chinese government has identified electric vehicles as one of the industries it wants to dominate in this century. Chinese firms are encouraged to borrow ideas from their foreign partners seeking to expand in the nation. About one in five U.S. companies in China have been asked to transfer technology, according to a survey last year.

Construction of Tesla’s plant in Shanghai will begin soon after approvals and permits are secured, and the first vehicles will roll off the line within roughly two years, the company said Tuesday. It will take another two to three years for the factory to reach its capacity to build about 500,000 vehicles annually.

To contact Bloomberg News staff for this story: Charlie Zhu in Shanghai at qzhu46@bloomberg.net

To contact the editors responsible for this story: Ville Heiskanen at vheiskanen@bloomberg.net, Lena Lee

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