The United States is keeping a close eye on Chinese state-owned companies looking to invest in Mexico’s automotive industry. During her visit to Brazil, US Trade Representative Katherine Tai expressed concerns about potential Chinese operations in Mexico. The US would scrutinize aspects like worker conditions, environmental impact, and ties to the Chinese government if Chinese car manufacturers set up shop in Mexico.
Tai highlighted the US-Mexico-Canada Agreement’s (USMCA) guidelines for state-owned enterprises, emphasizing the importance of fair treatment and commercial terms. She also stressed the need for a strong, transparent, diverse, trustworthy, and sustainable supply chain to compete with Chinese products.
USMCA negotiations resulted in new rules to address worries about competition from state-linked companies. The US is cautious about Chinese investments in neighboring countries like Brazil and encourages objective evaluation of China’s Belt and Road Initiative.
Through these actions, the US aims to maintain its competitive edge and ensure fair trade practices in the region amidst growing Chinese economic activities.