The region has become a major geopolitical hotspot in recent years, and a key source of tension between Beijing and Washington, which has effectively banned imports of products made there with a recent law.
The company announced the opening on its verified account on Weibo, a major Chinese social media platform. The new showroom is in Urumqi, the capital of Xinjiang and home to 3.5 million people.
The decision to open a showroom in Xinjiang, though, may prove controversial, and highlights how politically fraught China can be for Western companies.
The Chinese government, meanwhile, has reacted forcefully to international companies that have acknowledged any issues with doing business in Xinjiang.
The request sparked outrage in Chinese state media and in the country’s social media platforms.
“Although our original intention was to ensure compliance with US laws, this letter has caused many questions and concerns among our cherished Chinese partners, which we deeply regret,” Intel later said in a statement on Weibo.
Tesla’s US headquarters did not respond to questions about whether the company had any concerns with doing business in the region given the alleged human rights abuses there.
— CNN’s Beijing bureau, Teele Rebane, Chris Isidore and Reuters contributed to this story.