The Decision Made by Chinese Battery Company on Pelosi's Taiwan Visit Amid "Investment Delay"

Nancy Pelosi, Speaker of the U.S. House of Representatives (center), who is on an Asia tour, arrived in Taiwan on the 2nd amid strong opposition from China. [Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Amid escalating US-China tensions following Nancy Pelosi, Speaker of the US House of Representatives, visiting Taiwan, Bloomberg News reported on the 3rd, citing sources, that China's CATL, the world's largest electric vehicle battery company, has postponed its North American investment announcement.

According to the report, CATL had planned to announce its investment in building a battery factory involving billions of dollars within weeks but has decided to delay the announcement until September or October this year. CATL counts major global electric vehicle market players such as Tesla, BMW, and Volkswagen among its customers.

Initially, CATL intended to build the battery factory solely in the United States, but considering US-China relations, it has been contemplating splitting the investment between the US and Mexico. Sources revealed that CATL has been scouting sites in both Mexico and the US, and site selection and incentive negotiations are in the final stages, with plans to announce the final site.

Bloomberg explained, citing multiple sources, that CATL was concerned that announcing the investment amid heightened US-China tensions following Speaker Pelosi's visit to Taiwan could escalate tensions. However, CATL is still actively considering sites in both the US and Mexico and has no intention of abandoning its investment plans.

The news of CATL's investment postponement came after Speaker Pelosi visited Taiwan despite China's strong opposition. Upon Pelosi's arrival in Taiwan the previous day, China reiterated the 'One China' principle, considering Taiwan part of its territory, and issued warnings that it might take military action.

This content was produced with the assistance of AI translation services.