Commentary

Chinese Companies “Nearshoring in Mexico,” Making Washington Unhappy

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.

Related Posts

The Asia Group Welcomes Michael Switow as Principal to Further Strengthen Singapore Office and Southeast Asia Practice
Singapore & Washington, DC | July 10, 2025 – The Asia Group (TAG) is pleased to announce that Michael Switow ...
The Asia Group Announces Aman Raj Khanna as Partner
Washington, DC, New Delhi, & Mumbai | July 9, 2025 – The Asia Group (TAG) is pleased to announce the ...
TAG Chairman and Co-Founder Kurt Campbell Joined CNBC’s @Squawk Box Asia for an Interview Unpacking the Looming July 9 Tariff Deadline
“The level of dread in Asia…is off the charts,” said TAG Chairman and Co-Founder Kurt Campbell. He joined CNBC’s @Squawk ...
TAG China Country Director Han Lin Joins the BBC to Discuss the U.S.-Vietnam Trade Deal, Mexico Remittances, the U.S. “Big Beautiful Bill” and Other Topics
Han Lin, China Country Director at The Asia Group, told the BBC that while the passage of the “Big Beautiful ...
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.

"*" indicates required fields

1Personal Details
2Questionnaire & Application Materials
3Voluntary Self Identification

Personal Details

Name*
Address*