How China is setting up shop in Mexico

American companies such as General Motors are the largest importers of Chinese products to Mexico. One in five cars sold domestically are now made in China - as is GM's reputation Chevrolet Aveo.

But given the economic threat to the U.S. auto industry and the potential security risk posed by connected vehicles from China, the bigger fear in the U.S. is that Chinese electric vehicle makers such as BYD and Chery are set up in Mexico and selling large volumes or from there. are trying to export. . Although they have searched the states for sites, there is no factory Not yet announced.

"That's why it got President Trump's attention in the campaign," Pfeiffer says.

The U.S. may see the presence of automakers and other Chinese firms more broadly — including telecom operator Huawei — as an issue. he says

"[If] You have a significant percentage of Mexicans or Americans living in Mexico driving Chinese cars, which ultimately becomes a significant concern for America. He said.

"Many of the concerns raised by the US about Huawei will be run on steroids down the road if large parts of the future tech economy in Mexico are dominated by connected Chinese devices."


Mexico is bracing for instability as Trump's second term approaches.

The US president-elect developed an unlikely bond with Scheinbaum's populist predecessor Andrés Manuel López Obrador, who shared his transactional approach. to politics.

But an additional unexpected challenge came from the usually friendly Canada. Prime Minister Trudeau and other politicians have signaled they are open to withdrawing Mexico from the USMCA over the concerns. About China.

Canada's comments surprised Mexicans, but Trudeau and his fellow leaders are also thinking about their own auto parts sector ahead of the election. In 2025.

Sheinbaum initially responded coolly to Trump's threat of tariffs. Since then, the two leaders have held talks and have committed to continuing policies that prevent migrants from reaching the border and discussed repairing damaged security cooperation.

She has made it clear that the US is a priority but met with both President Joe Biden and President Xi Jinping at the G20 this year, signaling that she wants to continue working. with both.

Trump described himself Call Sheinbaum "brilliant."But the president-elect has yet to drop his threat of 25 percent tariffs and a 2026 review of the USMCA. is growing

Mexico is "sending the right message, I don't know if it will be enough for Donald Trump", said Baker of Ansley Consultants. "We have to do this for a long time."

Back in the semi-arid desert of Coahuila, thousands of workers on assembly lines continue to churn out vans and pick-up trucks for export to the US. But uncertainty surrounding the bilateral relationship is hanging over Alianza and other industry venues Throughout Mexico.

"After the pandemic, there was a big boom in visits, along the near shore, among customers trying to get established," says Alianza's Cantu. "Certainly there is a lull in the market today, a pause where many of them are assessing what will happen with policies or geopolitics in the US and Asia."


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