In 2003, China overtook Mexico as the largest exporter of goods to the US. However, in recent years, Mexico has begun to catch up.. According to Bloomberg Businessweek, while in 2018 China exported US$200 billion more than Mexico to the U.S., between June 2021 and June 2022 the gap narrowed to US$130,000 million. To a large extent, China itself. The restrictions imposed on Sino-US trade by the trade war unleashed by President Donald Trump in 2016 have led many Chinese manufacturers to set up in other countries to export to the US. Thailand and Vietnam have been two of their favorite destinations, but Mexico has also been able to become part of the strategy to maintain market share in the US market despite the tariff war.

The numbers say it clearly. With highs and lows, net investment from China and Hong Kong in Mexico has gone from US$65 million in 2013 to US$493 billion in 2021, according to figures from Mexico's Ministry of Economy.

Mexico's main advantages are its proximity to the U.S. market and its free trade agreement with the U.S. and Canada (T-MEC).. Its disadvantage lies in the limitations of its local supply chain to comply with T-MEC's appellation of origin requirements.

Annual net investment in Mexico from China and Hong Kong

(US$ millions)

Source: Mexican Ministry of Economy.