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Mexico will prioritise US ties over China

Friday, September 23, 2022

Significance

China nevertheless remains Mexico’s second-largest trade partner. Foreign direct investment (FDI) from China has also grown recently, reaching a historical record in net inflows in 2021.

Impacts

  • AMLO will probably step up hostile rhetoric towards foreign investors ahead of the 2024 elections, exacerbating business uncertainty.
  • Deteriorating security in Mexico will dissuade Chinese investors, particularly in mining, infrastructure and agriculture.
  • Chinese investors will continue to focus on northern states, despite government efforts to boost southern investment.

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