China is delaying approval for investment plans by Chinese automakers Geely and BYD to produce vehicles in Latin America, amid rising tensions in the trade war between the US and China, according to Reuters.
Geely and Renault reached an agreement in February where Geely would use Renault’s factories in Brazil and take a minority stake in Renault’s business in the country.
BYD also announced plans to build a facility in Mexico in 2023 and was expected to reveal its location by the end of 2024.
However, the approval process from China has taken longer than anticipated for both projects. Recently, China’s state planner raised concerns about potential risks related to technology transfer in the plans of these Chinese automakers, sources told Reuters.
The uncertainty in the global economy, fueled by recent tariff disputes between the US and China, has further complicated the situation. Chinese auto industry associations have warned the automakers about the increased risks to their investments.
Geely, in a statement, denied reports of delays or additional scrutiny following its agreement with Renault.
Earlier reports from the Financial Times suggested that China was delaying approval for BYD’s Mexican plant due to concerns over the potential leakage of technology to the US.
In addition, industry experts are keeping an eye on the latest trends in the electronics sector, with the upcoming Evertiq Expo events in Malmö, Sweden, scheduled for May 15, 2025. The event will provide opportunities for industry leaders to connect and attend insightful talks.
