A Closing Back Door? China’s Evolving FDI Presence in Mexico

Although it represents a relatively small portion of total foreign investment, Chinese FDI in Mexico is significantly higher than shown in official statistics. Tariff avoidance and supply chain diversification have driven a boom in Chinese investment, first in electronics and consumer goods and lately in the automotive sector. However, a growing gap between announced and completed investments hints at growing uncertainty around Mexico’s continued role as a back door to the US market.