China to Restrict Tesla Use by Military and State Employees
People familiar with the effort cite concerns Tesla cars could be source of national security leaks
Even if it's a retaliatory move, honestly, I think this probably makes a certain amount of sense. Tesla can grab just about any sort of telemetry or data from inside their vehicles that they want. For a semi-hostile foreign power, that's absolutely a privacy or security threat, because Tesla is subject to US laws, and might be compelled to surveil specific foreign threats.