China has delayed licensing of a BYD factory in Mexico for fear of technology being transferred to the United States.

Chinese officials are delaying clearance of a new plant in Mexico proposed by BYD, the world’s largest maker of electric vehicles, for concern that the technology developed by the business may end up in American hands, according to the Financial Times.
According to anonymous sources quoted by the FT, the Chinese Ministry of Commerce believes that Mexico will have unrestricted access to BYD’s advanced systems and techniques, and that the country’s «proximity» to the United States may mean that the United States will also gain access to these technologies.
BYD revealed intentions in 2023 to develop a factory in Mexico that would produce 150,000 vehicles per year and create 10,000 jobs. The firm, situated in Shenzhen (southeast), planned to manufacture cars in Indonesia, Brazil, and Hungary.
Furthermore, the return of Donald Trump to the White House has caused Mexico to lose interest in the BYD project, putting a greater emphasis on maintaining relations with its northern neighbor in the face of threats to cross-border trade.