According to the Mexico News newspaper, China’s investment in Mexico has continued to grow, while Chinese companies engaged in exporting to the United States are also showing interest in Mexico. Last year, China invested a record of almost $500 million in Mexico, compared to less than $300 million in 2020 and less than $200 million in 2019. Within two years, “Hofusan Industrial Park,” the first industrial park built by the Chinese in North America, expects to have 35 companies from China. In a recent report, Bloomberg noted that the industrial park has become a haven for China to bypass U.S. tariffs and restart supply chains in the wake of the epidemic. In this way, it takes advantage of the tax exemptions between Mexico and the United States under the framework of the United States–Mexico–Canada Agreement (USMCA).
Victor Jeifets, a professor at St. Petersburg State University, told Sputnik News: “The Americans have leverage on Mexico, which is very interested in the U.S. market. At the moment, with the growth of Chinese companies’ influence there, the United States will not go down the road of intensifying conflict with Mexico. The United States needs allies when dealing with China-related issues, and will not take the risk of forcing Mexico to make a choice. Therefore, if the cooperation between China and Mexico does not undermine the USMCA, the United States will not set up obstacles.”
According to Mexican media reports, some new Sino-Mexican cooperation projects have been announced. They include a $1 billion investment over four years by Chinese solar panel maker Solarever Group in a Chinese-owned automotive battery plant in Jalisco. China’s Lingong Machinery Group announced plans to build a $140 million manufacturing plant in Nuevo León, on Mexico’s northern border.
Source: Sputnik News (Russia), September 24, 2022