Taiwanese media revealed that China's electric vehicle giant BYD is attempting to enter the Taiwan market via an indirect approach. The company, through an agent, reportedly hosted a late-night banquet for senior officials and staff from Taiwan's Legislative Yuan, triggering controversy. Taiwan's Ministry of Economic Affairs stated it will strictly prevent vehicles from Chinese brands from entering the Taiwan market by any means.
According to comprehensive reports from Taiwanese media, BYD tried to import complete vehicles made in a third location, but was blocked by Taiwan's Ministry of Economic Affairs. However, Swire Group, BYD's agent, has not given up, and on July 28 hosted a night banquet for high-ranking Legislative Yuan officials. Attendees included staff members from the offices of Legislative Yuan President and Vice President Han Kuo-yu, Johnny Chiang, and Director-General of Legislative Yuan General Affairs Office Liao Jiong-zhi, with the dinner lasting over three hours.
The report stated that BYD allegedly wanted to lobby the Legislative Yuan in hopes of loosening relevant Ministry of Economic Affairs regulations to enable a large-scale entry into Taiwan. Democratic Progressive Party legislator Shen Bo-yang pointed out, "Once these cars enter, since they have a certain degree of internet connectivity, along with battery issues and so on, there will be certain national security concerns. Since the import of these cars has already been blocked by the Ministry of Economic Affairs and the Executive Branch, they want to try an indirect legislative approach to enter Taiwan."
However, Liao Jiong-zhi said in an interview on the 5th that the dinner was merely a spontaneous after-work invitation among friends. He emphasized that the dinner attendees have no business-related interactions with the Legislative Yuan, and that no civil service integrity regulations were violated.
Taiwan's Ministry of Economic Affairs responded on Tuesday: "Based on considerations regarding national security, vehicle safety, information security, and industrial development, the government will strictly prevent Chinese brand vehicles from entering the Taiwan market by any means."
The Ministry pointed out that current Taiwan regulations prohibit the import of whole vehicles from mainland China. As for assembling vehicles in Taiwan with components imported from China, these must comply with localization value ratio rulings before being permitted for sale and registration.
In response to Chinese brand vehicles attempting to enter Taiwan via a third location, the Ministry said the government will, in accordance with relevant laws and regulations, review possible control measures in the areas of technology introduction, import/export of goods, vehicle inspection, vehicle sales, and more.