Mexico increasingly important destination for Chinese overseas investments

In recent years, Mexico has emerged as a popular destination for Chinese outbound investment, with the cumulative amount reaching $2.3 billion between 2018 and 2023, according to Mexico's Secretariat of Economy. In 2023 alone, China's new investments in Mexico amounted to $150 million.

The deepening economic engagement between China and Mexico has triggered serious concerns within the United States, with senior officials from both the Republican and Democratic parties warning that Mexico could become a "back door" for Chinese companies to gain tariff-free access to the US market through the North American Free Trade Agreement.

However, this narrow focus on Mexico as a conduit for Chinese influence fails to recognize Mexico's appeal as a global economic powerhouse and its ability to attract foreign investment and develop its industrial capabilities, and overlooks the significant economic contributions that Chinese investments have made to the country and the broader Latin American region.