Chinese EV makers have talked big about global expansion, but the data shows they’ve mostly stayed close to home. Between 2020 and 2024, BYD and CATL pushed for overseas factories while continuing to build most of their production capacity in China, shipping finished cars and batteries abroad instead.
Completed foreign direct investment in EV and battery manufacturing remains a small fraction of China’s exports, according to the report. The U.S. has taken a harder line than others, slapping 100% tariffs on China-made EVs and banning certain software, making the vehicles costly and difficult to sell there.
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Industry analysts expect Chinese EVs to reach U.S. shores within a few years.
Building factories is slow and expensive, so exports remain the fastest way to get Chinese cars into foreign markets. The average EV price in the U.S. is more than double that in China, where cheaper models have driven global costs down. Canada and the European Union have softened their tariff policies, recognizing China as the dominant producer of both EVs and batteries.
Pressure is growing on the U.S. to adjust its stance as BYD and Geely deliver vehicles to nearby markets like Mexico and Canada. Even as foreign direct investment announcements surged to an average of $33 billion annually between 2022 and 2023, Chinese firms still relied more on exports than local production.
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Announcements have since dropped sharply as the U.S. and EU imposed restrictive tariffs. Armand Meyer, a senior research analyst at Rhodium Group, cited slower clean tech adoption, tariff uncertainty, reduced policy support, and expanding Foreign Entity of Concern restrictions. State legislatures and Congress have also increased scrutiny on Chinese investments in key sectors.
Africa and Asia have replaced Europe as the primary destinations for China’s EV-related investments. Meanwhile, U.S. interest has waned—60% of announced EV sector investments in the country have been canceled.
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Globally, completed investments are rising as local manufacturing becomes a common entry requirement. But plans in the West are moving slowly. BYD’s Thai factory is running, while its Hungary and Brazil plants face delays. The Turkey facility is suspended indefinitely.
China’s broader clean tech sector, which includes EVs, wind turbines, and solar panels, has seen more talk than action. Rhodium’s initial estimates suggested Chinese companies had announced nearly $400 billion in private capital investments since the pandemic. A closer look at verifiable deals cuts that figure in half. Over the past decade, only $85 billion in Chinese clean-tech FDI has actually materialized.