By Thomas Maxwell Published March 19, 2025 | Comments (0) | Chinese authorities are delaying approval of a BYD factory in Mexico out of fears EV technology will leak into the US. Visual China Group China is frequently a target of criticism over allegations that it does not innovate but instead exfiltrates intellectual property developed abroad and wins by undercutting rivals on price. Now that the country has arguably leapfrogged America in electrical vehicle technology, it is starting to see the value in protecting domestic business in the free market. According to the Financial Times, authorities in China have delayed approval of a new BYD factory in Mexico over concerns that its electric vehicle technology will be lifted over the southern border. It is very much a Spiderman pointing at Spiderman type situation. From the article: Domestic automakers require approval from Chinas commerce ministry to manufacture overseas and it has yet to give approval, according to two people familiar with the matter. Authorities feared Mexico would gain unrestricted access to BYDs advanced technology and knowhow, they said, even possibly allowing US access to it. The commerce ministrys biggest concern is Mexicos proximity to the US, said one of the people. BYD has quickly trounced Tesla in the electric vehicle market, selling 3.4 million vehicles in 2024 compared to Teslas 1.7 million, and is continuing to grow at a rapid pace while Elon Musks company faces declining sales globally. The Chinese company, which started in 1995 supplying batteries to other electronics manufacturers, has released a range of affordable electric cars and this week announced new battery technology that can charge a vehicle in just five minutes. Its self-driving system, called Gods Eye, will also be made available for free across its entire lineup in the near future. Maybe that is technology Musk would like to get his hands on.While there exists substantial evidence that Chinese companies steal intellectual propertystories of Chinese engineers fleeing America with thumb drives of confidential documents aboundit is also true that China is masterful at executing when the one-party authoritarian nation decides to prioritize an industry. It is hard to argue with the success of BYD, and its cars have received strong reviews. The growth of BYD has been fueled by substantial government support in China, and a large domestic market to sell its cars into. BYD has been expanding globally, however, which is unusual. The company sold 40,000 vehicles in Mexico last year and has become a major player in Brazil and Europe as well. Factories could help China further develop soft power abroad similar to the way its Belt and Road project has seen the country support infrastructure development in other countries.The U.S. meanwhile is falling behind in the global automotive industry where it once dominated, as Musk supports cutbacks on EV subsidies just as the industry was really starting to take off. Some critics have speculated that Musks real intention is to hamper rivals like GM and Ford, who still have yet to reach profitability in their EV businesses while Tesla has managed to become profitable on a per-unit basis. Either way, China is taking a clear lead in EVs domestically and abroad while the United States focuses on more dubious priorities, namely crypto and AI. BYD has some challenges abroad, as the Financial Times noted. BYD has been subject to accusations of slave labor conditions in its international factories, for one. And President Trump is still able to flex American power by threatening countries including Mexico that allow Chinese players to grow. BYD committed in 2024 to building a factory in Mexico but is now less committed as the government there seeks to placate the Trump administration. Tariffs are not as much of an issue as BYD does not sell into the United States due to government restrictions here, though if you want to get an electric vehicle at a rock bottom price, you might be able to drive over the border and pick up a BYD Dolphin Mini Plus. The car has an estimated driving range of 252 miles and retails for $23,000essentially the exact type of vehicle many Tesla fans hoped it would make.Daily NewsletterYou May Also Like By Matt Novak Published March 19, 2025 By Thomas Maxwell Published March 18, 2025 By Matthew Gault Published March 18, 2025 By AJ Dellinger Published March 17, 2025 Kate Yoder, Grist Published March 17, 2025 By Matt Novak Published March 14, 2025