Taiwan moves against Chinese car brands from third countries
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Under current regulations, the import of fully assembled vehicles from China into Taiwan is already prohibited.
PHOTO: REUTERS
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TAIPEI - Taiwan is preparing to restrict the import of Chinese-branded vehicles from third countries, following local media reports that BYD is planning to enter the Taiwanese market by shipping cars assembled in Thailand.
“Based on considerations of national security, vehicle safety, information security and industrial development, the government will strictly prevent Chinese-branded automobile from entering the Taiwanese market through various channels,” Taiwan’s Ministry of Economic Affairs said in a statement on Aug 5.
Under current regulations, the import of fully assembled vehicles from China is already prohibited, the statement added.
Vehicles assembled in Taiwan using Chinese components must meet a localisation threshold to be eligible for sale in the local market, it said.
The statement followed a Mirror Media report citing unidentified sources that BYD is working with Taikoo Motors Group, which has a Taiwan dealership, to import vehicles assembled in Thailand.
Two models have reportedly already been sent to Taiwan for safety certification.
BYD is increasingly seeking growth abroad as the domestic Chinese market has become saturated, with hundreds of players engaging in unsustainable price wars.
BYD and Taikoo did not immediately respond to requests for comment.
The governments in Beijing and Taipei already have poor relations, with China having threatened to use force to take control of the self-ruled democracy, which it claims is its territory.
Taiwan’s ruling Democratic Progressive Party has sought to diversify trade ties with other countries, amid concerns that Beijing could weaponise economic links at times of tensions.
Taiwan earlier in 2025 imposed anti-dumping tariffs on Chinese goods including steel products and beer, citing their “substantial damage to domestic industries.”
For security reasons, Taipei has implemented similar restrictions on Chinese products or components to be used in critical sectors, such as military drones.
The issue of Chinese imports has been publicly mentioned amid Taiwan’s ongoing tariff talks with the US, which has warned its trading partners about the transshipment of Chinese goods to the US.
Taiwan President Lai Ching-te has stated that his government will close the transshipment loophole for “low-cost goods” – a longstanding concern for Washington. BLOOMBERG
