Mexico City – More Chinese nationals are arriving in Mexico for work, exploration and doing business in the USMCA region in the midst of the promise of nearshoring , of trade tension between the US and China, political transitions in North America and President Donald Trump’s tariff threats.
The Mexican Moment, as the investment effervescence for the relocation of companies in 2023 was called, awakened the interest of the Chinese in the country and a greater number of them is arriving now in comparison to the number of Americans with a work permit in their hands.
The automotive, electromobility, semiconductor, trade and energy sectors starting with oil and gas are the ones that are attracting the Chinese, while Mexico seeks to substitute Asian imports, with a special interest in China, as a strategy to pave the way for the revision of the USMCA.
The Mexican government issued a total of 2,375 temporary resident work cards for people of American Nationality from January to November 2024, a number that is very similar to those for 2023 and 2022.
However, Mexico issued more work permits for Chinese citizens. Immigration authorities issued 3,779 temporary resident work cards between January and November 2024, almost 60% more than the ones issued for citizens from the U.S.
“Nearshoring did generate an increase (of visits to Mexico). This is clear to us, and we also know that increasing numbers of Chinese citizens are arriving more often with an interest in investing in Mexico or establishing their businesses”, said Héctor de la Cruz, vice-president of the Legal Thematic Commission of China Chamber Mexico, in an interview with Bloomberg Línea.
The number of temporary work permits granted to the Chinese in 2024 is 11% more than in 2023 and double the number of the ones issued in 2022. This trend meant that, for the first time in accordance with public records, in 2023 and 2024 there were more temporary permits for the Chinese than for Americans.
Mexico issued in total, for all countries, 20,064 temporary residence work cards between January and November 2024, 30% of which were granted to US and Chinese citizens.
Nearshoring consists on attracting production lines to places that are closer to the final client, in this case Mexico, for the US market.
The Department of the Interior updated immigration statistics for 2024, but stated in its website that the update in regard to the data on documentation and status of stay will be delayed and, therefore, the last data available is that of November.
The vice-president of the Legal Thematic Commission of China Chamber Mexico said that there is an interest from the Chinese in visiting Mexico and delegations of businessmen. with questions in regard to how business is conducted in Mexico and the Government requirements for establishing them in the country, are being frequently being received.
De la Cruz pointed out that part of the Chinese immigrants arrive in Mexico City, but the biggest focus is in the North of the country and the Bajío area, where they seek to progress in the processes of installing their businesses.
The upward trend in work permits for the Chinese coincided with President Trump’s second term in the White House and his protectionist policy based on the imposition of tariffs.
Former President Andrés Manuel López Obrador started his six year mandate with the intention of opening a new chapter in the trade relationship with China but, after the pandemic, Mexico became the U.S.’s main trade partner, which made López Obrador turn to a discourse in favor of North America in order to confront China.
President Claudia Sheinbaum has followed the path of her predecessor and faced with the possibility of the arrival of Chinese investment, she stated that her Government will give priority to the countries that it has trade agreements with and, while she is not definitively closed to Chinese investment, the circumstances under which they would be installed would need to be reviewed.
The vice-president of China Chamber Mexico said that there is growing interest in the country; nevertheless, he acknowledged that there is uncertainty because of the current situation and, therefore, the chamber will work to highlight the country’s benefits.
“We cannot deny it. Many (Chinese) projects have the intention of having Mexico serve as a bridge to the North American market, and this creates a certain concern”, he stated.
Samuel Ortiz, professor at the UNAM´s School of Economy considered that the import substitution strategy of the Mexico Plan has to be “more realistic”, as it must concentrate in processes rather than on final products and it must also incorporate Chinese investment.
During a forum with the objective of analyzing Trump’s tariffs, organized by the House of Representatives, the expert said that for several years Chinese investment in Mexico has not materialized and he cited the example of the project for the Dragon Mart in Cancun.
In November of last year, Sheinbaum stated that there is no firm investment project by a Chinese automotive company in Mexico, even though the BYD company has expressed an interest of establishing itself in Mexico.
“It is evident that there is a negative response by the United States, since President Joe Biden and now, with Trump, in an aggressive manner, of imposing tariffs as of the moment in which Chinese assemblers decide to establish themselves in Mexico”, Ortiz said. “I believe that it is a mistake to close the door to China via investments.”
Between 2023 and 2024, the announcements of Direct Foreign Investment add up to $175,447 million USD, 42% of which come from the U.S., 10% from China, 7% from Germany and 6% from Argentina according to data from the Department of Economy.
