Chinese Investment in Mexico: The Contemporary Context and Challenges

Public, private, and academic institutions, in Mexico and bilaterally with China, ordinarily can facilitate long-range planning, rectify information gaps, and correct misunderstandings. But a dearth of such institutions has hindered the growth of Chinese outward foreign direct investment (COFDI) in Mexico and spurred negative reactions against it, further dampening Chinese investments. Structural trade imbalances, coupled with Mexican fears about the Chinese economic challenge, poison the political atmosphere in Mexico and between Mexico and China, also impeding COFDI. Besides exploring these problems, I provide background information on the bilateral political relationship, the features of COFDI generally and details of several Chinese investment projects in Mexico, and the two countries’ trade links. I offer some proposals designed to create a better foundation for the growth of COFDI in Mexico, a priority of both countries.