China’s electric vehicle manufacturer BYD’s investment process in Türkiye is continuing smoothly with no issues, according to sources from the Turkish Ministry of Industry.
China warned companies investing overseas
The update was provided in response to recent concerns about after the South China Morning Post reported that the Ministry of Commerce of China organized a meeting in July that included major EV producers such as BYD and Hozon New Energy Automobile in order to talk about companies to exercise caution when investing in countries like Türkiye and India.
Turkish government sources, who spoke on condition of anonymity, assured that discussions with other Chinese automakers for additional investments are also ongoing.
These negotiations are seen as part of a broader effort to attract foreign direct investment in Türkiye’s growing electric vehicle market.
The clarification follows a report from Reuters, citing two individuals familiar with the matter, which revealed that China’s Ministry of Commerce had recently cautioned Chinese automakers about the potential risks of making auto-related investments abroad. Despite these warnings, BYD’s operations in Türkiye remain unaffected, according to Turkish officials.
Is China fooling Türkiye in trade?
Türkiye’s trade relationship with China has evolved into a complex and often troubling dynamic. While celebratory headlines highlight a 51% increase in exports to China, the underlying details reveal a more concerning picture.
As the notorious trade imbalance continues to grow year after year, China’s imports from Türkiye primarily comprise raw materials rather than end products, to the disadvantage of Türkiye.
| Rank | Products | 2020 | 2021 | 2022 | Share (%) 2022 | Change (%) 2021-2022 |
|---|---|---|---|---|---|---|
| 1 | Telephone sets and other communication devices | 2,485,006 | 2,681,079 | 2,254,300 | 5.5 | -15.9 |
| 2 | Automatic data processing machines | 1,725,276 | 2,076,391 | 2,083,735 | 5.0 | 0.4 |
| 3 | Stainless steel flat-rolled products | 208,358 | 498,771 | 968,250 | 2.3 | 94.1 |
| 4 | Diodes, transistors, and similar semiconductor devices | 280,252 | 443,975 | 965,128 | 2.3 | 117.4 |
| 5 | Polycarboxylic acids and their derivatives | 55,758 | 347,064 | 859,374 | 2.1 | 147.6 |
| 6 | Synthetic filament yarns | 480,741 | 671,960 | 818,982 | 2.0 | 21.9 |
| 7 | Other alloy steel flat-rolled products | 129,127 | 506,731 | 729,527 | 1.8 | 44.0 |
| 8 | Flat-rolled products of iron or non-alloy steel | 573 | 170,894 | 728,296 | 1.8 | 326.2 |
| 9 | Polyacetals, other polyethers, epoxide resins, polycarbonates, etc. | 129,031 | 370,924 | 700,010 | 1.7 | 88.7 |
| 10 | Electrical transformers and static converters | 388,688 | 466,369 | 659,607 | 1.6 | 41.4 |
