For Mexico, the foreign investment is an economic boost and some local governments have offered incentives to Chinese companies exploring factory options. But U.S. officials worry this could be a part of a larger strategy from Chinese auto makers to skirt trade restrictions and enter the American market.
Experts say this leaves Mexico in a difficult position of maintaining its crucial relationship with the U.S. without being overly friendly to Chinese investment. Now at the center of a trade war between two major powers, how has Mexico quietly become a hot spot for Chinese EV companies and will the country become a “backdoor” for these cars to drive into the U.S.?