Taiwan Considers Restricting Chinese Car Imports Amid BYD's Planned Entry

Taiwan is considering measures to restrict the import of Chinese-branded vehicles from third countries, including BYD Co.'s plan to enter the Taiwanese market through Thailand. The government is evaluating national security, vehicle safety, information security, and industrial development considerations to prevent Chinese-branded vehicles from entering the market. BYD is seeking growth abroad as the domestic Chinese market becomes saturated.

Taiwan is weighing new regulatory measures to block the indirect import of Chinese-branded vehicles, including those planned by electric vehicle giant BYD Co. The government is considering national security, vehicle safety, information security, and industrial development considerations to prevent such vehicles from entering the market. BYD, seeking growth abroad as the domestic Chinese market becomes saturated, is planning to enter the Taiwanese market by assembling vehicles in Thailand and selling them under the "Denza" brand through a local agent.

The Ministry of Economic Affairs (MOEA) has stated that it is reviewing the proposed regulations, which are expected by the end of the year. These measures aim to address concerns over national security, vehicle safety, information security, and the protection of Taiwan's auto industry. Currently, Taiwan bans direct imports of fully assembled vehicles from China. Locally assembled vehicles using Chinese components must meet strict localization thresholds to be approved for sale and registration.

The proposed regulations come as BYD seeks to expand its presence in the global market. BYD's plan to assemble vehicles in Thailand and sell them in Taiwan under the Denza brand has raised concerns among Taiwanese authorities. The government is evaluating the potential impact of these imports on Taiwan's auto industry and national security.

The MOEA's remarks follow reports that BYD is planning to enter the Taiwanese market through Thailand. The ministry's proposed regulations aim to address these concerns and ensure that any vehicles entering the market meet strict safety and security standards. The proposed measures are part of Taiwan's ongoing efforts to protect its domestic industries and ensure the safety of its citizens.

The proposed regulations are expected to be finalized by the end of the year. The MOEA has not yet provided specific details on the measures, but it is clear that the government is taking a proactive approach to address the potential risks associated with the indirect import of Chinese-branded vehicles.

References:
[1] https://www.tomshardware.com/tech-industry/semiconductors/two-former-tsmc-employees-arrested
[2] https://focustaiwan.tw/cross-strait/202508050024