Photo: Wikimedia Commons.
Mexico has become an increasingly attractive destination for Chinese investors, with a significant increase in foreign direct investment during the first five years of President Andrés Manuel López Obrador’s term.
According to preliminary data from the Ministry of Economy, investment from China has tripled between 2019 and 2023, reaching a total of $1.104 billion. This amount is three times higher than the figure recorded during the same period under the previous administration of Enrique Peña Nieto, which accumulated $396 million between 2013 and 2017.
Omar Troncoso, Managing Director of the consultancy firm Kearney Mexico highlighted the presence of Chinese companies in the hotel and restaurant industry in Monterrey, as well as the growing trend of Mandarin learning among customer service personnel in the region. This phenomenon demonstrates a shift in the economic dynamics, where Mexico is no longer just importing finished products but also conducting assembly processes in the country.
According to the Ministry of Economy, the economic outlook looks promising, with upcoming Chinese investment projects in the country such as Solarever and Elam-Faw, as well as automotive manufacturing companies that will receive investments totaling $1.585 billion in the next two to three years. These investments add to the steady growth of Chinese presence in key sectors such as flat panel manufacturing and metal plates, mainly in cities like Tijuana and Mexicali.
The United States-Mexico-Canada Agreement (USMCA) has also played its part in attracting Chinese investments. The trade agreement with the United States, a prominent market for China, has been a determining factor in the decision for Chinese companies to establish themselves in Mexico.
These economic trends reinforce Mexico’s position as a strategic trading partner for China and suggest a significant shift in regional economic dynamics. As more Chinese companies seek to establish themselves in Mexico and take advantage of the USMCA, it is expected that the flow of investments will continue to increase, further consolidating the trade relationship between the two countries.
This commercial development is key in the context of the upcoming elections in Mexico, scheduled for June 2, which are crucial as they will define the country’s political direction at a time when Chinese investments are increasing significantly.
Challenges such as political violence and concerns over the influence of organized crime, important issues such as migration, the economy, and drug trafficking are at the center of the debate, underscoring the importance of these elections for Mexico’s future in a context of growing Chinese investments and the consolidation of its trade relationship with the China.
Main source:
Inversión China en México se triplica en el sexenio de AMLO | Vanguardia MX (2024, abril 7). https://vanguardia.com.mx/noticias/inversion-china-en-mexico-se-triplica-en-el-sexenio-de-amlo-JN11585972
Other related sources:
Elecciones en México: qué se vota, quiénes son las candidatas y qué temas dominan los históricos comicios | France 24 (2024, marzo 1). https://www.france24.com/es/am%C3%A9rica-latina/20240301-elecciones-en-m%C3%A9xico-qu%C3%A9-se-vota-qui%C3%A9nes-son-las-candidatas-y-qu%C3%A9-temas-dominan-los-hist%C3%B3ricos-comicios