Türkiye-China Trade Relations Flourish Amid BYD’s Mega Investment in Türkiye
In recent years, trade relations between Türkiye and China have witnessed a significant resurgence, driven by strategic investments and evolving market dynamics. A key highlight of this burgeoning relationship is a recent mega investment deal between the world’s largest electric vehicle (EV) maker, BYD, and Turkish authorities. This landmark agreement has not only strengthened commercial ties but has also catalyzed a substantial increase in Türkiye’s exports to China.
A Surge in Exports to China
Türkiye’s exports to China have seen remarkable growth, with the latest data revealing a nearly 50% increase in July compared to the same period last year. This surge reflects the growing demand for Turkish products in the Far East, as China continues to diversify its markets and expand its commercial presence in Türkiye.
China, currently facing economic and trade difficulties with Western nations, has strategically pivoted towards enhancing its trade relations with Türkiye. This shift is underscored by the recent agreement between BYD and Türkiye’s Industry and Technology Ministry, which is expected to have a transformative impact on Türkiye’s industrial landscape.
BYD’s Billion-Dollar Investment in Türkiye
Under the new agreement, BYD will invest approximately $1 billion (TL 33.5 billion) to establish a state-of-the-art production facility in Türkiye, with an annual capacity of 150,000 vehicles. In addition to the production plant, BYD plans to set up a mobility R&D center, further solidifying Türkiye’s position as a key player in the global electric vehicle industry.
BYD, which currently leads the world in EV sales with an annual production of about 3 million vehicles, aims to enhance its local production capabilities and logistics efficiency through this investment. Türkiye offers unique advantages, including a rapidly growing technology ecosystem, a strong supplier base, an extraordinary geographical location, and a skilled workforce.
This investment is also part of BYD’s broader strategy to meet the increasing demand for new energy vehicles in the region and to expand its reach to European consumers, leveraging Türkiye’s strategic position as a gateway to Europe.
Export Growth Across Key Sectors
The positive impact of Türkiye’s strengthened trade relations with China is evident across various sectors. Data sourced from the Turkish Exporters Assembly (TIM) and reported by Anadolu Agency (AA) showed that Türkiye’s exports to China in July reached $312.9 million, a 51% increase compared to the same period last year. China ranked as the 16th largest destination for Turkish exports last month, with outbound shipments rising by 37.5% compared to June.
The mining sector led the way with the highest volume of exports to China in July, amounting to $187.6 million. This was followed by chemicals and chemical products ($63.9 million), iron and non-ferrous metals ($9.6 million), textiles and raw materials ($8.2 million), and the electrical and electronics sector ($6.5 million).
From January through July, Türkiye’s exports to China continued to show a positive trend, rising by 11.6% compared to the previous year and reaching $1.8 billion. The mining sector once again stood out, exporting goods worth $992.2 million during this period. Other key contributors included the chemicals sector ($312.2 million), the iron and non-ferrous metals sector ($93.3 million), the textiles and raw materials sector ($73.6 million), and hazelnuts and their products ($51.5 million).
Ankara Takes the Lead
Interestingly, Ankara emerged as the top exporter to China in July, with companies from the capital city making shipments worth $111.8 million. This highlights the regional distribution of export growth and underscores Ankara’s significant role in Türkiye’s trade dynamics.
Looking Ahead
The deepening trade relations between Türkiye and China, particularly in light of BYD’s substantial investment, signal a new era of economic collaboration between the two nations. As Türkiye continues to strengthen its industrial base and expand its export capabilities, the country is well-positioned to benefit from this evolving partnership.
For Türkiye, the BYD investment is more than just a business deal; it’s a strategic move that aligns with the nation’s broader goals of becoming a global hub for technology and manufacturing. With the continued support of its skilled workforce, strategic location, and robust industrial infrastructure, Türkiye is set to play a pivotal role in the future of the global electric vehicle market and beyond.
