EV Cold War: Beijing Wary of US Access to Chinese EV Tech

Beijing is slowing approvals for Chinese automakers Geely and BYD to advance new production projects in Latin America, as concerns grow that US trade tensions could expose sensitive electric vehicle (EV) technologies to American rivals, according to sources familiar with the matter.

The delays come at a time when the US-China trade landscape faces renewed uncertainty, with tariffs once again emerging as a central flashpoint — particularly under the prospect of former President Donald Trump returning to office and reviving his hardline tariff policies.

People close to the discussions said China’s state planner, the National Development and Reform Commission (NDRC), has raised red flags over potential “technology transfer risks” linked to the projects, without offering detailed explanations.

The concerns appear to stem from the proximity of some planned facilities to the U.S. market, raising the possibility that proprietary EV innovations could leak across borders.

Industry association representatives have also warned Chinese carmakers in private that the shifting global trade climate — especially the risk of escalating U.S. tariffs — could erode the financial rationale for these overseas investments, particularly in Latin America, a region seen as strategically close to the United States.

The scrutiny reflects Beijing’s growing sensitivity to the risks associated with exporting its EV expertise at a time when its homegrown brands — especially BYD, Geely, and Nio — are rapidly challenging legacy automakers on global markets.

In March, the Financial Times reported that China was holding back approval for BYD’s planned plant in Mexico over fears that its EV technologies could end up in U.S. hands.

Despite the regulatory caution, both Geely and BYD have pushed ahead with their international brand presence with Geely showcasing its EX5 for the Brazilian market, slated for launch in July.

BYD, meanwhile, has been steadily expanding its overseas manufacturing network in Hungary, Thailand, Uzbekistan, Mexico and Brazil as it reduces reliance on exports from China, which remain vulnerable to European and American tariffs.

The unfolding situation highlights the geopolitical crosscurrents shaping the future of the global EV industry in the midst of the “tariff war” as overseas expansion is weighed against the strategic risks of allowing its core automotive technologies to slip beyond its control.

Source: FMT