Approving control of Chinese investments in Mexico would violate the APPRI between the two nations, said Gregorio Canales, CEO of North America Investment Solutions.
Recently, the Baker Institute proposed establishing a trilateral mechanism to control Chinese investments in the USMCA to provide Mexico with certainty regarding these capital flows.
Control of Chinese investments
Canales replied that this is not possible because it would violate the APPRI (Agreement on the Promotion and Protection of Investments) between Mexico and China, Mexico’s Foreign Investment Law, and the rules of the World Trade Organization (WTO).
“The Senate would have to undo the APPRI with China, and by doing so, we would create a huge mess with China, which we have no reason to do,” he questioned.
Canales considered that China may be interested in the Mexican market to a certain extent and, secondly, that from Mexico it can export to third markets, including those in America and Asia in particular.
“Is Mexico a target for China or some Chinese companies to reach another market? I think the answer is yes. But just as Mexico is, China is looking at Vietnam, Thailand, Malaysia, the Philippines, Africa, and several other countries around the world. For example, large Chinese automakers have just invested in Turkestan,” Canales said.
At least until August 2024, Mexico had fallen behind in modernizing the APPRI with China, an issue linked to the public debate that has arisen in the wake of the USMCA review.
Trade in goods
On the same point, Kenneth Smith, an international trade specialist and partner at AGON, said: “The United States is asking you to contain Chinese exports that come with unfair practices and control investment, but we have to see what they are doing too, because President Donald Trump is still negotiating with China and cannot ask you to close down while they continue to negotiate.”
A new bill was recently introduced, backed by several members of the House Ways and Means Committee, which aims to have USMCA partners establish review mechanisms similar to the Committee on Foreign Investment (CFUS).
Mexico attracted $34.265 billion in FDI in the first half of 2025, a record with annual growth of 10.2%. Flows continued to accelerate compared to 2023 and 2024. The figures are preliminary and are usually adjusted upward later.