China Shifts Manufacturing and Investment to Mexico to Skirt US Tariffs

China has dramatically increased investments and exports to Mexico to avoid US tariffs, taking advantage of Mexico's large, young, and relatively cheap workforce.

Chinese automotive and electric vehicle companies are establishing operations in Mexico to access the lucrative US and North American markets under favorable trade terms.

Major Chinese brands like Huawei, Hisense, and CATL already have facilities in Mexico, with more expected to come.

Chinese investment is shifting from Mexico City towards border regions like Nuevo Leon to be closer to US supply chains and markets.

While economic potentials are promising, Chinese firms in Mexico may still struggle with local regulations, organized labor, crime, and potential US political pressure.