In the news: Samsung and BYD cooperate, Guangdong FTZ eases visa rules and e-health takes off in China
July 19, 2016 | BY
Katherine Jo &clp articlesThis week Samsung said it will acquire a BYD stake to push electric vehicles, the Guangdong Free Trade Zone released favorable immigration policies for foreign workers and a survey indicated a surging demand for online healthcare services
Samsung Electronics Co. said it will acquire a stake in BYD Co. through a $2.3 billion share sale being conducted by the Chinese electric vehicle (EV) and battery maker. The Korea Economic Daily reported that Samsung has agreed to buy $449 million of BYD shares, and according to a Shenzhen Stock Exchange filing, the target company said the two parties will work together on EV components. The move comes as tech companies tap the auto industry's shift toward electric and self-driving cars. The Korean conglomerate parent is already a significant player through subsidiaries Samsung Electro-Mechanics, which makes auto cameras, sensors and telecom modules, and Samsung SDI, which manufactures EV batteries. The latter faced certification troubles in China in late June, when the PRC Ministry of Industry and Information Technology excluded it—along with LG Chem—from a list of authorized EV battery makers whose products are eligible for financial subsidies. This upcoming deal, however, raises expectations that Samsung SDI may be in line to supply its batteries to BYD.
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