BYD Halts $1 Billion Turkey Factory Investment Amid Diplomatic Concerns

Chinese electric vehicle giant BYD has put its planned $1 billion factory investment in Turkey on hold, a move that follows a commitment made in July 2024. The company had signed an investment protocol with Turkey, with President Recep Tayyip Erdoğan attending the ceremony, and pledged to establish a 1 billion dollar production facility in Manisa.

Despite the initial agreement and BYD's subsequent utilization of customs advantages and strong sales in the Turkish market, no construction activities have commenced at the factory site over the past two years. The decision to suspend the project has now been reported, raising questions about the future of this significant investment.

According to Middle East Eye, the suspension is linked to past diplomatic and commercial developments between the two countries. Chinese officials reportedly still consider Turkey's cancellation of a $3.4 billion air defense system deal signed in 2015, reportedly due to U.S. pressure, as a significant factor in their assessment of Turkey as a reliable partner.

Another long-standing issue impacting bilateral relations is China's policies toward the Uyghur Turks in the Xinjiang region. While Ankara has adopted a more cautious stance over time regarding these practices, which have drawn criticism from human rights organizations, sources suggest this approach has not provided sufficient assurance to Beijing. These diplomatic considerations are believed to have influenced BYD's evaluation of its Turkish investment.