A view of Mexico city's skyline during a sunset as cars are pictured along Reforma Avenue in May, 2023.accused Mexico of being a “backdoor” for Chinese goods and called for bilateral trade negotiations that would sideline the continent’s southern partner. Federal Finance MinisterThe attempts to cozy up to the U.S. president-elect appear to have accomplished little beyond souring the relationship between Ottawa and Mexico City. Mr.
Against this backdrop, the increased presence of Chinese companies and products in Mexico – with its tariff-free access to the United States – has spooked American policy makers. Still, Chinese companies and brands are building up a noticeable presence in Mexico. That won’t go down well with the incoming U.S. president, who wields tariffs like a cudgel and has threatened a 100-per-cent levy on Mexican vehicles.
Mexico and Vietnam have been the main beneficiaries of this “nearshoring” trend and, in 2023, Mexico reclaimed its position as America’s No. 1 source of imports, exceeding China for the first time in two decades. All told, there are now around 70 Chinese auto-parts plants operating in Mexico, out of a total of about 3,000, according to Jorge Carrillo Viveros, emeritus professor at El Colegio de la Frontera Norte. There’s one Chinese car factory – a joint venture between China’s JAC Group and Mexico’s Giant Motors Latinoamérica – which has been operating since 2007.
While Chinese exports to the United States have slumped, shipments to Mexico have increased – from an average of around US$75-billion in the five years before the COVID-19 pandemic to US$118-billion in 2022 and US$114-billion in 2023. “The problem, if you are going to impose a new tariff on Mexico, is that in reality you are imposing it on U.S. firms established in Mexico, Japanese firms, European firms,” Prof. Dussel Peters said in an interview.