Mexico is one of the farthest countries from China. A direct flight from Shenzhen to Mexico takes 16 hours, and without direct flights, a one-way trip with transfers can take two days. When they finally arrive in Mexico, Chinese entrepreneurs find out that they have to deal with high costs and chaotic security conditions. Despite these challenges, Chinese investors have to come.
Since 2022, a large number of Chinese manufacturing companies have been setting up factories in Mexico. A survey conducted by BBVA, Mexico’s largest commercial bank, on the Industrial Parks Association shows that from 2018 to 2022, among the foreign enterprises entering Mexico, 35% were American and 6% were Chinese. However, the proportion of Chinese companies is expected to reach 20% by 2025.
Global shipping crisis, US-China trade tensions and the US-Mexico-Canada Agreement are the main factors that drive Chinese companies to increase investment in Mexico. In May 2024, Caijing journalists spent 21 days in Mexico. The majority of Chinese manufacturing professionals interviewed by Caijing revealed that operating business in Mexico is fraught with difficulties.
