Chinese investments in Turkey: Beijing explores new routes to reenter Western markets

On July 9, Wang Chuanfu, CEO of the Chinese automotive company BYD, and Turkish Minister of Industry and Technology Mehmet Kaci signed an agreement in Istanbul, which Turkish President Erdogan attended. The agreement on constructing a Chinese plant to produce BYD electric cars in Turkey is worth $1 billion.

Such investments by a Chinese company greatly complicate the US and EU plans to curb China's intentions to monopolize the global electric car market, which accounts for more than 60%.

BYD's entry into the Turkish market is China's response to the increase in tariffs on Chinese electric car imports in the United States and the European Union, which were introduced in May and June 2024.

The agreement between BYD and the Turkish government effectively bypasses US and EU restrictions, providing China with a new way to penetrate Western markets through Turkish production.