Chinese Economy Watch

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Are you mentally stable?

Very much I am stable, pretty healthy.

You are living the young man fantasies, thinking material things are so important, thinking national pride, is so important, we are all flesh, passing life flowers, eternity in the material world is a dream, the smart person always knows spirituality is more important than materialism, love more important than power, justice more important than money, work is good, live with decency is good, nothing wrong with work and have prosperity, but without justice and love, life is chaos, but with time you will see, when you grow into spiritual things, but as a nation you will learn via Russia.

 

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The Chinese government fears that proximity to the US will facilitate access to BYD's advanced technologies, which has slowed approval for its new factory.
Chinese authorities have postponed authorization for BYD, the world's largest electric car manufacturer, to establish a plant in Mexico. According to the Financial Times, the Chinese Ministry of Commerce fears that unrestricted access to BYD's technology in Mexico will facilitate its arrival in the United States.

According to sources cited by the British media, the proximity between Mexico and the US is raising concerns in Beijing about the possible leakage of the Chinese company's strategic innovations. This situation has put the automaker's project on hold, which planned to produce around 150,000 vehicles annually in the country and generate 10,000 direct jobs.

As part of its global expansion strategy, BYD had announced plans to open plants in Indonesia, Brazil, and Hungary. However, the Chinese government prioritizes investment in countries aligned with its global infrastructure initiative, known as the New Silk Roads.

The outlook has become even more uncertain with the possible return of Donald Trump to the US presidency. The Mexican administration has adopted a more cautious approach, prioritizing its trade relations with Washington amid threats of new tariffs. In fact, the Mexican government has responded with measures such as imposing tariffs on textiles from China and investigating unfair competition practices in sectors such as steel and aluminum.

Industry experts warn that relations between Mexico and China have become more tense. "The Mexican government seeks to attract Chinese investment, but its relationship with the US remains a priority," explained Gregor Sebastian, an analyst at the consulting firm Rhodium.

Meanwhile, Stella Li, executive vice president of BYD, recently stated that the company has not yet made a final decision on building its plant in Mexico. "The landscape is constantly changing; we continue to evaluate the best option for all parties," he noted.

Despite the uncertainty, BYD maintains a growing presence in the Mexican market. By 2024, it sold more than 40,000 electric vehicles in the country and aims to double this figure, in addition to opening 30 new dealerships. However, the viability of its production expansion in Mexico continues to depend on trade tensions between China, Mexico, and the US.

China retrasa aprobación de planta BYD en México por preocupaciones sobre transferencia tecnológica

China ha retrasado la aprobación para que BYD establezca una planta en México, debido a preocupaciones sobre una posible transferencia de tecnología a EE.UU. La incertidumbre en las relaciones comerciales y el enfoque del gobierno mexicano en preservar sus vínculos con Washington han complicado...

tuinterfaz.mx

 

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Beijing fears that Mexico's proximity to the United States could facilitate the transfer of key technology developed by BYD, Tesla's main competitor, the Financial Times reported on Wednesday, March 19.

The administrative hold by Chinese authorities comes despite BYD's announcement of plans to establish its plant in Mexico in 2023, along with similar projects in Brazil, Hungary, and Indonesia.

The Chinese company had stated that the Mexican plant would generate 10,000 jobs and have an annual production capacity of 150,000 vehicles.

However, automotive companies from the Asian giant require authorization from China's Ministry of Commerce to manufacture abroad, and this approval has not yet been granted in BYD's case.

Authorities fear that Mexico will gain unrestricted access to BYD's technology and know-how, even allowing the United States to benefit from them.

“The Commerce Ministry's main concern is Mexico's proximity to the United States,” the British outlet reported, citing two sources.

Geopolitics and Mexico's stance on China
In addition to the fear of technological leaks, other geopolitical factors contribute to the pause in government approval.

One is that Mexico seeks to maintain good relations with Donald Trump, who in turn announced tariffs on cross-border trade, threatening exports and jobs.

Trump did the same with Beijing, imposing higher taxes on imports from China. In response, China imposed tariffs on approximately $22 billion worth of US goods, primarily targeting the agricultural sector.

Trump's team accuses Mexico of being a “back door” for Chinese products to enter the United States without paying tariffs, taking advantage of the North American Free Trade Agreement.

The Mexican government denies these accusations, but has imposed new tariffs on Chinese textiles and initiated anti-dumping investigations against steel and aluminum products originating in China.

The FT says that the Mexican government would obviously like to receive more investment from China, but its trade relationship with the United States is much more important.

What BYD Will Do
When asked if US tariffs and Mexico's tougher stance toward China had halted the company's plans, Stella Li, BYD's executive vice president, said that "no decision has yet been made on the Mexico plant."

"There is different news every day, so we just have to do our job," she said. "More study is needed to see how we can satisfy and improve to offer the best result for everyone." In February 2024, Li had said they would choose the factory location before the end of 2024.

BYD reported sales of more than 40,000 vehicles in Mexico last year, and the brand expressed its desire to double sales volume and open 30 new dealerships in the country by 2025

La planta de BYD en México se retrasa por este temor

La aprobación de la planta de BYD en México se demora mientras la marca registra ventas récord en el país y tiene planes de crecimiento.

www.merca20.com

The 40,000 BYD units sold in 2024 would place the brand as the thirteenth best-selling in the country, according to INEGI figures, very close to Suzuki and Honda (which sold 43,661 and 42,336 units, respectively).

BYD vendió 40,000 unidades en el 2024

Para este año, la automotriz china tiene el objetivo de abrir 30 distribuidoras más en México.

www.eleconomista.com.mx

With a 4% market share, BYD has not only captured the attention of Mexican consumers but has also changed the game in the automotive industry.

BYD irrumpe en el top 10 de ventas en México y desafía a las grandes

En 2024, la marca china BYD ha logrado un hito impresionante en el mercado automotriz mexicano, posicionándose en el top

america-retail.com

 

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Deputies Call for Raising Tariffs on Chinese Cars
The Chamber of Deputies proposed to the Ministry of Economy that it consider establishing a 25% tariff (currently between 15% and 20%) on imports of finished vehicles originating in China, lithium batteries, and high-value parts from that nation.

The Chamber of Deputies proposed to the Ministry of Economy that it consider establishing a 25% tariff (currently between 15% and 20%) on imports of finished vehicles originating in China, lithium batteries, and high-value parts from that nation, to reduce access to products from third countries with which Mexico does not have trade agreements and to align itself with the tariff policy imposed by the United States, strengthening the region.

Representative Miguel Ángel Sallin Alle, chairman of the Economy, Trade, and Competitiveness Committee of the Lower House, reported that he sent a Point of Agreement to the head of the Ministry of Economy, Marcelo Ebrard, to define a 25% tariff on vehicles manufactured in China and sold in Mexico, including all brands, including American ones.

Diputados piden elevar aranceles a autos chinos

La Cámara de Diputados planteó a la Secretaría de Economía se analice establecer un arancel del 25% (actualmente es de entre 15% y 20%) a las importaciones

www.eleconomista.com.mx

 

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Sinotruk signed a strategic cooperation agreement with Toyota Motor Corporation
Youdaoplaceholder0 2025-04-26




On April 25th, Sinotruk and Toyota signed a strategic cooperation agreement at the Toyota headquarters in Nagoya, Japan. Man Shengang, the Party Secretary and Chairman of Shandong Heavy Industry Group, and Yoichi Miyazaki, Vice President of Toyota Motor Corporation, attended the signing ceremony and held a discussion and exchange. Ma Changhai, a member of the Party Committee and deputy general manager of Shandong Heavy Industry Group, and Mitsuasa Yamagata, general manager of Toyota's Hydrogen Energy Plant, attended the event.



Man Shengang said that Sinotruk and Toyota have been actively promoting the cooperative development of the hydrogen energy industry for a long time, and have made gratifying progress and practical results in the collaborative research and application of hydrogen fuel cell heavy-duty trucks and power systems. Shandong Heavy Industry has always adhered to the concept of open cooperation, working hand in hand with global industry giants. It hopes to deepen strategic cooperation with Toyota Motor in broader fields and at a higher level, achieving complementary advantages and jointly opening up the future.

Yoichi Miyazaki expressed his approval of the latest cooperation achievements made by both sides. He said that China is a huge potential market for the promotion and popularization of hydrogen energy, and long-distance heavy-duty trunk logistics vehicles are an important scenario highly suitable for the application of hydrogen energy. We look forward to deepening cooperation in the hydrogen energy industry between the two sides, jointly opening up broad development space in the future, and making greater contributions to the global carbon neutrality cause together.

Han Feng of Sinotruk Group and Shinichi Tanaka of Toyota Hydrogen Plant signed a strategic cooperation agreement on behalf of their respective companies. Toyota Motor Corporation possesses world-leading hydrogen fuel cell technology, and Sinotruk is a leading enterprise in China's commercial vehicle industry. The hydrogen fuel cell tractors jointly developed by the two sides have been delivered in batches to the market for application. In the future, the two sides will establish broader cooperation in areas such as joint research and development, demonstration operation, promotion and application, and business model innovation of hydrogen fuel commercial vehicles, and jointly create a new ecosystem for the zero-carbon logistics industry chain.

 

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On April 24th, at the launch ceremony of the main event of "China Space Day", Shanghai Yuanxin Satellite Technology Co., Ltd. signed a strategic cooperation framework agreement with National Telecom Public Company Limited, the national telecommunications operator of Thailand. Both sides will work together to promote the development of Thailand's digital economy based on deepening cooperation in commercial aerospace and low-orbit satellite Internet business.





It is reported that Yuanxin Satellite has reached a business cooperation agreement with Thailand's National Telecom in Thailand. Through the low-orbit satellite broadband network service capacity of the Qianfan constellation, they will enhance the satellite communication capabilities in remote areas of Thailand, jointly explore the market application of satellite broadband networks, and cultivate digital solutions, among other work.

The Qianfan constellation is a giant low-orbit satellite constellation that adopts a full-band, multi-layer and multi-orbit design. In the future, it will provide global users with low-latency, high-speed and highly reliable satellite (broadband) Internet services through a network composed of more than 15,000 satellites. Its first batch of networking satellites was successfully launched on August 6, 2024. The fifth batch of networking satellites was successfully launched in Wenchang, Hainan on March 12 this year in a "one rocket, 18 satellites" manner. Up to now, five batches of networking satellite launches have been completed, and the number of satellites in orbit has increased to 90.

Previously, Yuanxin Satellite has also reached relevant cooperation intentions with Brazilian state-owned communication enterprises, Malaysian satellite operation and solution providers, etc. Its overseas business is advancing in an orderly manner. The commercial application demonstrations of the Qianfan constellation on a global scale have covered scenarios such as smart ocean and smart agriculture.