Washington has expressed concern to Mexico about an impending wave of Chinese investments pouring into the country, as three of the largest Chinese electric vehicle manufacturers prepare to build factories south of the US border.
The companies “mg”,”BYD” and”cherry”, entered into talks with Mexican officials in an effort to find locations for their factories this year, according to several people familiar with the negotiations.
Another Chinese company plans to build a battery factory worth 12 billion dollars, according to another. The new wave of investment, which could give Chinese manufacturers an important foothold in the region, also puts Latin America’s second-largest economy in the middle of a trade war between the United States and China.
According to three people, U.S. officials raised questions about Chinese investments more broadly during meetings with their Mexican counterparts. For their part, Mexican officials have acknowledged that they should be cautious when considering Chinese investments, because of the risks of provoking the wrath of the United States.
Mexico, the seventh largest country in the world in the field of automotive industry, is one of the countries most benefiting from the disruptions that have affected global supply chains due to the disruptions caused by the covid-19 pandemic and the trade war between Washington and Beijing, it has cheaper labor and an extensive automotive supply chain, as well as benefiting from the North American Free Trade Agreement with the United States and Canada.
