Summary

China’s Ministry of Commerce has delayed BYD’s approval to build an EV plant in Mexico, fearing U.S. competitors could access its technology.

The move reflects rising trade tensions, with Trump accusing Mexico of being a “backdoor” for Chinese goods. Mexico has also imposed tariffs on Chinese imports, complicating relations.

BYD remains committed to expansion but faces supply chain and tariff challenges.

Other Chinese EV makers, including ZEEKR and Neta, have also sought entry into North America, but China’s caution may stall these efforts.