Talks are progressing between BYD Co. and South Africa over a possible investment by the Chinese electric vehicle manufacturer, a top government official said, although no specific time frame for the next steps has been agreed. <\/p>\n\n\n\n
BYD has expressed interest to work and invest in South Africa, according to Parks Tau, the country\u2019s trade, industry and competition minister. \u201cIt\u2019s now about taking it to the next level,\u201d he said. <\/p>\n\n\n\n
Tau pointed to South Africa\u2019s extensive car-production experience and its access to key resources such as lithium and manganese that are key to battery making. \u201cWe\u2019ve got the minerals that are indispensable,\u201d he said. <\/p>\n\n\n\n
Leaders from some 50 African countries gathered in Beijing this week for the Forum on China-Africa Cooperation, or Focac, where there have been frequent calls for China to help industrialize African economies by increasing technology transfers and beefing up manufacturing. <\/p>\n\n\n\n
Earlier this week, Tau accompanied the South African President Cyril Ramaphosa to BYD\u2019s Shenzhen headquarters, where they were personally greeted by founder and chairman Wang Chuanfu who sought to wow them with the company\u2019s advanced EV technology and car features.<\/p>\n\n\n\n
Chinese EV makers are facing geopolitical pressures as they push to sell their cars on international markets. The US has slapped 100% tariffs, effectively shutting them out, and the European Union introduced new measures on July 5 that raised duties on Chinese-made EVs to as\u00a0high\u00a0as 48%.<\/p>\n\n\n\n
Both have cited Beijing\u2019s financial backing for the industry and the overcapacity it has encouraged.<\/p>\n\n\n\n
Tau said such moves have forced the Chinese to rethink what their approach is to international expansion. \u201cBut our commitment is to continue to work on this relationship,\u201d he told Bloomberg News on the sidelines of Focac. <\/p>\n\n\n\n
He said his government was talking to BYD as well as other Chinese companies in the EV-related industry. \u201cThey\u2019ve been part of the conversations we are having here, primarily focusing on ensuring that industrialization happens on the African continent.\u201d<\/p>\n\n\n\n
On Thursday, Chinese leader Xi Jinping pledged $50 billion in financial support for Africa over the next three years, including $10 billion in investment by Chinese companies. His No. 2, Li Qiang, on Friday pushed for deeper integration into the continent\u2019s economies.<\/p>\n\n\n\n
\u201cChinese companies in Africa should continue to localize their operations, create more local jobs, train more local talent, and further contribute to local people\u2019s well-being,\u201d Li said.\u00a0<\/p>\n\n\n\n
While the consumer market for electric and plug-in hybrid vehicles across Africa remains somewhat nascent, Chinese companies in the EV space are making early bets, particularly investments in the supply chain. Xiaomi Corp Chairman Lei Jun said at Focac that his company wants to increase investment in Africa and strengthen cooperation with local firms in areas such as EV. <\/p>\n\n\n\n
BYD has entered several African markets, including Tunisia, Rwanda, Morocco and South Africa, following a similar trend of other Chinese auto brands, including SAIC Motors and smaller upstart Xpeng.\u00a0<\/p>\n\n\n\n