The China-based electric vehicle manufacturer BYD is facing an uphill battle as the Chinese government has stalled approval for its proposed car factory in Mexico, citing concerns over potential technology leaks to the United States. Reported by the Financial Times on March 19, 2025, this delay arises from fears that Mexican access to BYD's advanced automotive technologies could ultimately benefit the U.S.
According to sources familiar with the matter, the Ministry of Commerce in China must approve overseas manufacturing plans of domestic companies, and as of now, BYD has yet to receive the green light. The Chinese authorities are particularly concerned about the proximity of Mexico to the U.S., which raises alarms over possible unrestricted access to BYD's technologies. “What the Ministry of Commerce fears most is the closeness between Mexico and the United States,” one source told the Financial Times.
In addition to these technological fears, the changing political climate in Mexico complicates BYD's plans further. The new Mexican government has taken a less welcoming stance toward Chinese companies, which has led to increased difficulty for BYD as they seek to establish production facilities. “The new government of Mexico has an unfriendly attitude towards Chinese companies, making BYD’s situation even more challenging,” noted another source.
BYD's ambitions are not new; the company has expressed plans to set up a factory in Mexico since at least February 2024, when Zou Zhou, the manager of BYD Mexico, first revealed the project. Subsequently, in January 2024, Bloomberg reported that BYD had dispatched a delegation to explore potential factory sites in the Mexican state of Jalisco. An estimated budget of around $600 million is projected for the construction of this facility, which is approximately the same cost as BYD's Brazilian factory.
Jorge Vallejo, a senior figure at BYD Mexico, mentioned in a previous report by Reuters that the company expected to announce the location of the factory by the end of 2024. The new factory, once operational, is projected to produce around 150,000 vehicles per year, with the potential to double production capacity in subsequent phases.
Despite the bureaucratic hurdles surrounding its factory plans, BYD has found success in the Mexican market. Last year, the company sold over 40,000 vehicles and now aims to double their sales efforts in 2025, along with launching 30 additional showrooms across the country.
In a related development, the Mexico City Congress passed a law on March 18, 2025, banning violent bullfighting, resulting in mixed reactions from the public. While animal rights activists celebrated the law's passage as a major victory in the fight against animal cruelty, bullfighting enthusiasts expressed deep dissatisfaction with the decision.
This law, approved with 61 votes in favor and only 1 against, prohibits the killing of bulls and the use of sharp objects that could injure the animals, as part of an initiative dubbed “non-violent bullfighting.” Lawmakers aimed to reduce violence and protect both bulls and human participants in the sport.
The passage ignited protests from bullfighters and fans, many of whom voiced their discontent through chanting and demonstrations. Meanwhile, supporters of the bill, which includes animal rights activists and legislative advocates, celebrated their victory outside Mexico City's Congress by raising their fists in triumph.
The Mayor of Mexico City, Clara Brugada, a key proponent of the legislation, expressed her joy through social media, stating that this legislation marks an important step toward transforming the capital into “a city that respects animal rights and refuses to tolerate their abuse.” The law is set to come into effect within 210 calendar days, giving the government time to draft new regulations concerning bullfighting.
Mexico City hosts the largest bullfighting arena globally, far surpassing those found in Spain, the birthplace of this controversial tradition. Bullfighting has been part of Mexican culture since 1529, during the Spanish conquest led by Hernán Cortés, and is often regarded as a cultural heritage of the Spanish. However, the long-standing tradition is now embroiled in controversy and concerns about animal welfare.
While the ban has upheld animal rights issues, it also poses a significant economic challenge. The bullfighting industry reportedly creates around 80,000 direct jobs and approximately 146,000 indirect jobs in Mexico, generating annual revenues nearing $400 million. Congressman Nazario Noriega suggested that this law could further weaken the traditional practices of bullfighting that many consider prideful in Mexico.
As both BYD faces challenges in expanding its operations in Mexico and the bullfighting industry comes to terms with strict regulations, significant shifts in Mexico's cultural and economic landscapes are unfolding. Animal rights and traditional practices are squaring off in a political arena where passionate advocates on both sides are determined to sway the future of these industries.
