Build Your Dreams (BYD), a Chinese multinational high-tech company, has delayed the construction of an electric vehicle plant in Mexico over concerns about US access to its technology, the Financial Times reported.
Plans to build this plant were announced in 2023, with the promise of 10,000 jobs and producing 150,000 vehicles per year.
However, the production of domestic vehicles outside of China must be approved by the Chinese Ministry of Commerce, and the Ministry has decided to delay its approval, citing concerns that the Mexican government could leak its technology to its northern neighbor, according to Financial Times sources.
And it’s no wonder: the electric car race is about to begin in different parts of the world, and with it, the technology for smart cars capable of using autopilot functions. It is these types of programs (powered by artificial intelligence) that are jealously guarded by companies and represent a large part of the money invested in the development of these vehicles.
To make matters more complicated, Elon Musk, CEO of the electric car company, Tesla, has gained power in the U.S. not only as a tycoon but more recently as a close ally of President Trump.
Experts also agree that it doesn’t make much sense for Mexico to increase diplomatic and trade tensions amid the threat of a tariff war with the U.S. by welcoming a Chinese company with open arms.
In an interview with the Financial Times, Stella Li, Executive Vice President of BYD, said that “no decision has been made about the plant in Mexico yet,” and that “every day is different news, so we just have to do our job.”
BYD reported sales of more than 40,000 vehicles in Mexico last year and has stated that it plans to open another 30 dealerships in the country by 2025.
The Chinese company is clearly poised to become Tesla’s biggest competitor globally, and its relationship with Mexico, while stable, will be marked by its closeness to the U.S., as well as the U.S. president’s threats to impose tariffs on both countries.
Mexican Press Agency is part of ALMA, which is dedicated to news and information about Mexico and Mexicans in the United States and is a fiscally sponsored project of Social Focus, a 501(c)(3) nonprofit organization based in Redwood City, California.
