China Delays Geely, BYD's Latin America Expansion Amid Trade Uncertainties

China is currently delaying regulatory approvals for automakers Geely and BYD to establish production facilities in Latin America, primarily due to concerns over technology transfer risks and uncertainties stemming from U.S. tariffs. Geely recently launched its EX5 electric vehicle in Brazil and has a partnership with Renault to use its local production facilities, while BYD is planning a plant in Mexico. Both companies originally expected quicker approvals, but the review process has become more stringent, requiring more documentation and extending timelines. Chinese authorities have communicated concerns about potential technology leaks to the U.S., complicating the risk-reward calculus for these outbound investments. Although approvals are delayed, Geely maintains that its operations in Brazil remain on schedule without additional scrutiny. The situation reflects a cautious approach by Chinese regulators towards overseas investments amid broader trade tensions.