Exclusive News: China Delays Approval of Geely and BYD's Investment Plans in Latin America -- Sources
China has delayed the approval of Geely and BYD's investment plans in Latin America due to the uncertainty of U.S. tariffs, which has exacerbated trade and economic risks. Geely hopes to acquire a minority stake in Renault's Brazilian operations, while BYD plans to build a factory in Mexico. The National Development and Reform Commission of China stated that these plans pose risks of technology transfer, leading to extended review times and requiring companies to submit more materials. Nevertheless, the cooperation between Geely and Renault has already shown results, with electric vehicles launched in Brazil
Geely hopes to acquire a minority stake in Renault's Brazilian business
BYD plans to build a factory in Mexico
Uncertainty over U.S. tariffs leads to delays in Chinese approvals – sources
Geely claims cooperation with Renault has shown initial results
Reuters, April 11 - Two informed sources said that due to increased uncertainty in trade and the economy from U.S. tariffs, China is delaying approvals for Chinese automakers Geely (GEELY.UL) and BYD (002594.SZ) to produce cars in Latin America. Geely and Renault (RENA.PA) stated in February that they had reached an agreement for Geely to use Renault's production facilities in Brazil and acquire a minority stake in Renault's Brazilian business. BYD announced its plan to build a factory in Mexico in 2023 and stated last year that it would announce the site selection for the factory by the end of 2024. However, the approval time for both projects from the Chinese government has taken longer than expected, with the National Development and Reform Commission of China indicating to representatives of the two automakers that there are risks of technology transfer, but did not provide details. They said that Chinese automotive industry officials also warned in separate discussions with automakers that Trump's tariffs would bring uncertainty to global trade and the economy, complicating their investment risks and returns. These sources cautioned that discussions are still ongoing and changes may occur. A third source said that authorities have become stricter and more cautious regarding overseas investments by Chinese automakers, but have not completely stopped accepting applications. This source added that the review time has been extended, and they will require companies to submit more materials. Geely stated in a statement that its cooperation with Renault in Brazil is successful, with no delays or additional reviews, and noted that its electric vehicles were launched locally this week, just 52 days after the agreement was signed. BYD, Renault, and the National Development and Reform Commission of China did not immediately respond to requests for comment. (End)