China’s BYD investment in Türkiye moves forward seamlessly

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