China Seeks Production Platform in Mexico to Maintain North American Access

Mexico City — Chinese companies are looking to establish manufacturing operations in Mexico to maintain access to the North American market, particularly as the US-Mexico-Canada Agreement (USMCA) undergoes review, according to a business leader.

Rafael Valdez, president of the Mexico-China Bilateral Business Committee of the Mexican Business Council for Foreign Trade (Comce), said Asian firms are not deterred by potential trade policy shifts under a Donald Trump administration. Instead, they view Mexico as a strategic production platform.

“Mexico is shifting from just a destination market to becoming a manufacturing and services platform. Companies want to produce here to integrate into regional supply chains,” Valdez told El Sol de México.

He noted that investor interest focuses on strategic industrial sectors like advanced manufacturing, energy, agribusiness, and technology applied to production processes. In energy, Chinese companies have shown interest in solar, wind, and waste utilization projects, while agribusiness sees growing demand for machinery and automation to modernize agricultural production.

Valdez emphasized that Mexico’s appeal lies in its geographic location, network of trade agreements, and consolidated industrial base, which help reduce logistical costs and facilitate exports to the United States.

Bilateral trade currently exceeds $120 billion annually in imports, primarily concentrated in industrial components, machinery, and equipment used by Mexico’s export industry.

Valdez argued that the growth in imports from China should not be interpreted solely as a trade deficit but as part of the functioning of Mexico’s export manufacturing sector.

“There is a direct correlation: greater imports of Chinese inputs lead to greater export capacity for Mexico. Many of these products are intermediate goods that are transformed here and later exported,” he explained.

However, Valdez warned that investment potential depends on resolving structural challenges.

“Security, legal certainty, and regulatory stability are key elements for long-term investments. Companies evaluate these factors before deciding to set up production,” he said.

He added that recent tariff measures adopted by Mexico against countries without trade agreements should be seen as temporary adjustments within a global trade reconfiguration, rather than a closure to foreign investment.

For Mexico, the challenge will be to move toward higher value-added segments and leverage incoming capital to strengthen technological and manufacturing sectors.

“The goal is not just to import more, but to attract investment that generates employment, technology transfer, and greater industrial integration,” Valdez concluded.