Uncertainty in BYD’s Plans in Mexico Amid Trade Tensions

Mobility World Summit
March 8, 2025

The plans of BYD, a Chinese electric vehicle manufacturer, to establish a plant in Mexico are currently on hold due to uncertainty caused by potential tariffs imposed by the United States. The Chinese government has delayed the necessary approval, citing concerns about Mexico’s proximity to the U.S. and the risk of technology transfer.

Conclusion

Although Mexico’s president, Claudia Sheinbaum, stated that the investment was never formal, states such as Puebla, Jalisco, and Nuevo León had expressed interest in hosting the plant, which promised to generate more than 10,000 jobs and produce 150,000 vehicles annually. This case highlights the complexities of the trade war between China and the U.S. and its impact on foreign investment, underscoring the need for clear strategies and international agreements that promote economic stability and industrial development.

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