Chinese FDI and offshoring in Mexico are generating regional debate. Although the country attracted record investment in 2025, doubts remain in the United States and Canada about the impact on the automotive sector and compliance with USMCA rules.
Mexico’s current stance on Chinese investment remains neutral, and the government is focused on maximizing FDI attraction as part of the offshoring phenomenon.
However, the Canadian government noted in a report that Mexico remains committed to expanding trilateral collaboration on issues related to other countries’ non-trade policies and practices, as agreed at the fourth meeting of the USMCA’s Foreign Trade Committee (FTC).
Offshoring occurs when a company moves part of its production or services to another country to reduce costs. The process involves moving factories, jobs, or service centers. It also responds to business strategies focused on global competitiveness.
Chinese FDI and offshoring
In 2024, cumulative Chinese FDI inflows into Mexico between 2006 and 2024 totaled $2.792 billion. This figure is equivalent to just 0.5% of the total foreign productive investment in the Mexican economy.
In December 2023, the US Treasury Department and the Mexican Ministry of Finance signed a Memorandum of Understanding. The agreement seeks to create a working group to exchange information on investment assessment and national security.
Automotive industry
Chinese electric vehicle manufacturers, such as BYD, MG Motor, and Chery, have shown interest in setting up production plants in Mexico. However, these intentions have not yet materialized into actual investment projects.
Stakeholders in Canada and the United States have expressed concern about Chinese investment in Mexico. The focus is on the automotive sector and the risk that Chinese companies will seek to circumvent USMCA tariffs by producing or transshipping from Mexican territory.
Mexico attracted a record $34.265 billion in FDI during the first half of 2025. This was a year-on-year increase of 10.2%, consolidating the country as a relevant destination for foreign capital.
For more than three decades, North America has benefited from free trade under NAFTA and now USMCA. Integration into strategic value chains, such as automotive and agri-food, has strengthened the regional economy.
Although Canada and Mexico maintain an important bilateral relationship, their commercial hub remains the United States. In 2024, more than 80% of Mexican exports and more than 75% of Canadian exports were destined for the U.S. market.