Canada’s Industry Minister Just Flew to China to Court BYD and Three Other EV Giants

Industry Minister Mélanie Joly is heading to China this week to meet with four Chinese electric vehicle makers that are eyeing potential investments in Canada, according to the Globe and Mail.

BYD, Chery, Geely, and Shanghai Launch Automotive Technology have all been examining possible investments in Canada’s auto sector. Joly will visit BYD’s manufacturing base in Changzhou, Shanghai Launch’s Wuxi location, meet with Chery, and tour Geely’s Shanghai research and development centre during her four-day visit starting Monday. The official ISED press release did not mention these companies, but it was revealed later by Joly to the media.

“What is important is how can we make sure that we offer great vehicles to Canadians that are actually affordable, and with the latest technology, while keeping and protecting our 500,000 auto workers,” she told the Globe. “My job is to square that circle, and the Prime Minister has given me the mandate to really be able to work with the sector and work with the Chinese automakers.”

She said she wants to see Canadian companies doing contract manufacturing for Chinese EV makers in Canadian factories, pointing to Magna International’s subsidiary doing similar work for China’s Xpeng in Austria as a model.

Any deal would have to meet four conditions Joly previously laid out, which means investments must be structured as majority Canadian-owned joint ventures, follow Canadian labour standards, use Canadian parts, and ensure vehicle software is secure and protects user data.

The trip comes as Ottawa works to shore up Canada’s auto sector in the face of US tariff pressure and an uncertain future for Canadian vehicle exports to the US. The move does carry some political risk though, as any Chinese investment in Canadian auto manufacturing is likely to irritate the Trump administration during ongoing USMCA renewal talks. There are already plans from US government officials to ban Chinese EVs from crossing across the border from Canada.

After China, Joly heads to Japan to meet with Honda and Toyota executives, who together account for about 77% of auto assembly in Canada. Last month, Honda abandoned a $15 billion Ontario EV plant.

BYD is already actively hiring for jobs to set up shop in Canada, as the company looks to jump on the federal government’s recently lowered tariffs on Chinese EV imports.