Chinese Companies “Nearshoring in Mexico,” Making Washington Unhappy
China, Trade, Mexico, USMCA
Key Takeaways
The flow of trade from China to Mexico has surged in recent years and Chinese manufacturers are opening new facilities in Mexico at a rapid pace. China is Mexico’s fastest-growing source of inbound foreign investment, underscoring Mexico’s strategic importance to China’s global trade and investment strategy.
Chinese firms increasingly aim to leverage Mexico as a hub for re-export, allowing Chinese goods to circumvent U.S. tariffs and trade restrictions on products imported directly from China. As impediments to direct U.S.-China trade have expanded, in 2023 Mexico became the United States’ top trading partner—a position held by China for two decades.
This trend is attracting negative attention from U.S. lawmakers, who are speaking out against China utilizing Mexico even as required renegotiations of the U.S.-Mexico-Canada Agreement (USMCA) approach in 2026. U.S. policymakers have called for increased tariffs and stricter ‘rules of origin’ to slow down the expansion of Chinese transplants in Mexico. Such policies could add to Washington-Mexico political troubles and lead to new compliance burdens for U.S. companies that produce in Mexico, among other business impacts.
As trade tensions mount between India and the US, the question of tariffs is at the forefront. Bilateral trade in ...
Scroll to Top
You Are Applying For:
Chinese Companies “Nearshoring in Mexico,” Making Washington Unhappy
Apply Now
Submit the details below, and our HR team member will get in touch with you shortly.
The Asia Group is an equal opportunity employer where an applicant’s qualifications are considered without regard to race, color, religion, sex, national origin, age, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or any other basis prohibited by law. The Asia Group continually seeks to diversify its staff, particularly to broaden opportunities for individuals from demographic groups that are historically underrepresented in the strategic advisory profession.
Media
Commentary
Chinese Companies “Nearshoring in Mexico,” Making Washington Unhappy
Key Takeaways
Listen on:
Related Posts
TAG China Country Director Han Lin Discusses Trump’s 10% Tariffs on China
TAG China Country Director Han Lin Discusses China’s Reaction to U.S. Tariffs in the Nikkei Asia
The Asia Group Announces New Offices in Australia
TAG Senior Advisor Mark Linscott decodes US-India Trade Ties Amid Tariff Concerns