Chinese automakers are eyeing the American car market, making substantial investments in Mexico so that they can take advantage of geopolitical and trade agreement benefits. Since China faces high tariffs and restrictions on exporting cars to the U.S., Mexico’s strategic location and the USMCA trade agreement have made the country a favorable location for Chinese companies to produce electric vehicles (EVs) for export to the U.S.
Beijing’s strong support for China’s domestic electric vehicle industry, along with the prominence of Chinese company CATL as the world’s largest lithium battery producer, has positioned China as a major player in the EV market. Chinese automakers, such as JAC and Giant Motors, have already been assembling cars in Mexico for several years. Recently, Chinese companies Chery and Foton also began setting up factories in Mexico.
Source: Voice of America, November 1, 2023
https://www.voachinese.com/a/focusing-on-the-us-ev-market-chinese-companies-invest-heavily-in-mexico-20231031/7335006.html