Description: Chinese electric vehicle (EV) manufacturer BYD is aiming at reconstructing the old Ford factory in Brazil’s Camacari as it’s goal is to expand on the Brazilian EV market. BYD has had a checkered history in Brazil where formerly reporters caught factory workers of Chinese origin living and working in slave – like conditions in BYD facilities after which the company considerably postponed the introduction of their first assembly lines in Brazil. The Brazilian EV market has seen a substantial growth in the past year with sales jumping to 85% with seven out of ten vehicles being sold pertained to BYD. Another Chinese EV automaker, GWM, also recently disclosed plans of developing manufacturing sites across Brazil in order to leverage the booming market. BYD’s future in Brazil has no guarantees although amplified aspirations still persist with Brazil and China reaffirming joint geopolitical stances on key global issues.
Impact: China has rapidly started to attack and infiltrate foreign markets through its automotive industrial sector. Trump’s 145% tariffs have sent the second largest global economy into a tailspin looking for all and any potential strategic partners in enhancing their global economic and industrial footprint while making smaller countries’ economies largely dependent on Chinese exports. BYD, known for having close ties to China’s communist party, would spearhead the country’s industrial and economic endeavors going forward in order to counter US influence on the global market. China and Brazil, traditionally natural allies primarily through the BRICS bloc, would further enlarge bilateral cooperation with China spreading its economic and strategic influence in the US backyard. The largest weapon the US currently possesses are the tariffs which most likely would be further leveraged to oppose Chinese companies from infiltrating larger and booming markets such as Brazil.