Chinese investment in Mexico continues to grow as more and more companies from the world’s most populous nation seek to take advantage of the country’s proximity to the United States and its free trade agreement with its northern neighbor. Jalisco Governor Enrique Alfaro announced Monday that Solarever Group, a Chinese solar panel manufacturer, would invest US $1 billion over the next four years in an electric vehicle battery plant in the state, while Nuevo León Governor Samuel García met on Tuesday with executives of the Lingong Machinery Group (LGMG), which is investing $140 million in a boom lift plant in the northern border state.
Not to be outdone, Guanajuato’s Sustainable Economic Development Minister Ramón Alfaro Gómez said Wednesday that a Chinese company, which he didn’t name, was building a plant in León where products for the corporate and housing sectors would be manufactured. This week’s announcements are indicative of the increased interest in Mexico among Chinese companies that export to the United States, the world’s largest economy. Investment from China (including Hong Kong) reached a record high of almost $500 million last year, according to the Economy Ministry, up from just under $300 million in 2020 and just over $200 million in 2019.
The investment from the world’s second largest economy looks set to increase further as an increasing number of Chinese firms relocate to take advantage of tariff-free trade with the U.S. and Mexico’s proximity to their main export market. “If you want to do good business with America, you must have something close to the market,” Simon Huang, Mexico manager for Chinese furniture company Kuka Home, told the Bloomberg news agency.
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Source: Mexico Daily News