Overview

• China's Ministry of Commerce has withheld approval for BYD's Mexico factory, citing concerns about potential technology transfer to the US.
• Mexico's proximity to the United States is seen as a key risk, with fears that advanced EV innovations could be accessed by American competitors.
• BYD, now the global leader in EV sales, has been expanding internationally but faces growing geopolitical and regulatory challenges.
• The delay adds to BYD's logistical hurdles in Mexico, including a lack of local supply chains and higher tariffs on imported parts.
• The EU is also investigating BYD's Hungary operations over potential unfair subsidies, further complicating its global expansion plans.