BYD, China's largest electric car maker, has denied building factories in Germany and Mexico.

Earlier, Reuters reported that BYD is considering building its third European factory in Germany.

Meanwhile, the Financial Times reported that China has delayed approval for BYD to build a plant in Mexico, due to concerns that smart car technology developed by BYD may leak across the border to the U.S.

Sources familiar with the matter said China will prioritize development projects in countries participating in the Belt and Road Initiative.

Another source said that the new Mexican government has taken a hostile attitude toward Chinese companies, which makes BYD's situation in Mexico more difficult.

In response to these reports, a source from BYD's public relations department told TechWire on Wednesday that it was untrue that that the company would build factories in Germany and Mexico.