China’s BYD poses a potential threat to US national security.

China’s BYD, the largest electric vehicle (EV) maker in the world, is eyeing a potential factory in Mexico, according to a recent report. This move has raised concerns about the implications for US national security. The prospect of allowing billions of dollars worth of cheap Chinese cars into the US could harm the American auto industry, negatively impacting the economy, tax revenues, and even the military. Furthermore, increased BYD sales would strengthen China’s economy, indirectly funding its military endeavors.

Europe has already initiated a probe into China’s EV subsidies, and it is likely that the United States will follow suit. These probes could result in stricter restrictions on China’s exports. However, both Washington and Brussels have been slow to act due to their liberal economic attitudes towards trade with China, which many argue should have been reconsidered after the 1989 Tiananmen Square massacre.

The potential threat posed by BYD is not to be taken lightly. In the past, cars from Japan in the 1970s and South Korea in the 1990s had a significant impact on the American auto industry. However, China’s communist regime is seen as an adversary or worse, making the threat even more concerning. Elon Musk himself has warned that without trade barriers against Chinese cars, they could “pretty much demolish most other car companies in the world.”

One of the reasons BYD poses a significant challenge to US automakers is that Mexican labor costs are much lower than those in the US. This, combined with the risk of debilitating strikes by UAW workers, has led many companies to seek manufacturing opportunities in Mexico, Vietnam, and India. BYD also benefits from approximately $4.3 billion in state support and vertical integration in mining, batteries, and semiconductors, giving them a competitive advantage.

What is particularly worrying is that US investors are funding BYD’s bid to outcompete automakers in democracies, seemingly unconcerned about national security implications. Warren Buffet himself has invested hundreds of millions of dollars in BYD. It is highly likely that the Chinese Communist Party will ensure that its billionaire backers make substantial profits in the process.

BYD’s success in the global market is evident, with 1.57 million pure EVs sold in 2023, the highest of any company in the world. They have a presence in various countries such as the United Kingdom, Thailand, and the United Arab Emirates. In addition to manufacturing in China, BYD has factories in Uzbekistan and plans for additional facilities in Hungary and Brazil.

While BYD faces challenges in the Chinese market due to the faltering economy and intense competition, the Chinese government is pushing EV makers to expand overseas. By moving production to Mexico, BYD can bypass US tariffs on Chinese imports, paying only a fraction of the tariff rate. This raises concerns about empowering China and its military ambitions.

It is crucial for American politicians to take action to prevent a potential influx of BYD vehicles into the US market. The American people must consider if slightly cheaper EVs are worth gambling on America’s future and empowering the People’s Liberation Army. The Biden administration has shown some signs of addressing China’s overcapacity abroad, but more needs to be done to safeguard national security.

In conclusion, China’s BYD poses a potential threat to US national security through its plans to establish a factory in Mexico and potentially export vehicles to the US. The influx of cheap Chinese cars could harm the American auto industry and fund China’s economy and military. It is essential for American politicians to take immediate action to prevent this threat and protect national security interests.