Byd Mexico Plant in Limbo while “China fears EV technology that flees us”

The future of the Chinese self-managing factory proposed in Mexico remains uncertain in which Beijing in Beijing that the technological secrets of its best electric vehicle could flee in the United States, according to a Financial Times report.

The greatest concern of China is the proximity of Mexico to the United States, The FT reportedquoting people familiar with the problem.

This concern has led the Chinese Ministry of Commerce to maintain the approval of the factory provided by Byd in Mexico. Chinese car manufacturers need state approval to make abroad.

Also on AF: BYD actions have reached a record on the load of technology twice as quickly as Tesla

The administration of Xi Jinping fears that a country factory will give Mexico an access without restriction to advanced byds and EV Knowhow, the FT reported. He is also concerned about the fact that Mexico could give the United States access to Byds Tech, added the report.

Byd has done several breakthroughs in EV technology in recent months, in particular A 5-minute fast load platformDriver's help tech that it is currently distribute and a hybrid technology that would give its cars A practice of more than 2,000 kilometers.

These innovations also helped Byd to steal a walk on its closest rival of Elon Musk, Tesla, the manufacturer of American electric vehicles led by Elon Musk, who saw sales collapse and faced increasing criticism concerning a lack of innovation in its range.

Byd is also a leading battery manufacturer, technology that US electric vehicle companies are still to be controlled.

This technological feat would explain the concerns of Beijing around the possibility that its know-how of Byds flees to the greatest rival in Chinas, the United States, with which it fights an intense trade and technological war.

Addressing FT concerning Mexican plans for dead, the executive vice-president of Byds, Stella Li [on] The installation of Mexico again.

Byd investors, on the other hand, remained unmistakable by the uncertainty around the mexical factory of the manufacturers. The manufacturers of the Shenzhen stock closed with gains of more than 3% on Wednesday, against an overall drop of 0.1% on the composite of Shanghai.

The fence on Wednesday was just shy from the High Byd record hit earlier during the day, its actions gathering more than 55% in the last six months.

Impact of trade war

The World Trade War launched by US President Donald Trump has also weighed on Mexican byds. The FT reported.

Faced with threats of steep prices, Mexico has lined up more closely in the United States and also imposed prices on Chinese textiles. The government of Mexico Claudia Sheinbaum is also currently investing in steel and aluminum products from China for Dumping.

The changing dynamics led Mexico to cool on the byd factory, FT reported.

The new government of Mexico has adopted a hostile attitude towards Chinese companies, which makes the situation even more difficult for Byd, said the newspaper.

Mexico’s exchange position has also been aroused by American concerns that the country could become a bridge so that Chinese electric vehicles enter the United States.

These concerns were particularly pronounced when Byd began an expansion in Mexico last year. The automaker, however, said that its Mexican factory was not intended for exports.

Byds Large Expansion Plans

Despite the potential setback in Mexico, Byd continues to have great plans to extend beyond the Chinese continent.

At the beginning of this month, He collected $ 5.59 BillioN In a primary action sale in Hong Kong, the product he plans to use to extend his activities abroad.

This week he said it was aim to choose a location For its third European plant before the end of the year.

“All the options are on the table, all countries are currently underway,” said the special adviser to the VE giant for Europe Alfredo Altavilla.

Read also:

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Byd in talks to provide carbon credits to European car manufacturers

Brazil to amend BYD for each worker found doing slaves work

Chinas byd winning larger sales, can surpass Ford, Honda

Byd Sales Boom in Southeast Asia while Tesla's growth slows down

Trump plans to tighten Chinese supply chains in electric vehicles

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Tesla plans the cheaper and smaller model to stimulate sales in China

Vishakha Saxena

Vishakha Saxena is the multimedia editor and editor on social networks at Asia Financial. She has been working as a digital journalist since 2013 and is an experienced multimedia producer writer. As a trader and investor, she is strongly interested in the new economy, emerging markets and the intersections of finance and society. You can write to him at [email protected]