Sheinbaum Denies Mexico Chinese Plant; BYD Teases Announcement

Mexican President Claudia Sheinbaum clarified that there are no concrete plans for a Chinese electric vehicle (EV) manufacturer to set up a plant in Mexico. In a recent press conference, she addressed the rising international attention linked to the upcoming 2026 review of the United States-Mexico-Canada Agreement (USMCA).

“There is no confirmed investment from any Chinese automotive company in Mexico. We have a treaty with the United States and Canada,” Sheinbaum said, underscoring that Mexico’s economic strategy prioritizes its free trade agreements, especially with the USMCA.

Her comments come in response to speculation about BYD, a major Chinese EV maker, potentially building a factory in Mexico. At the Bloomberg Línea Summit 2024, BYD General Manager Jorge Vallejo indicated that the company was in the final stages of discussions with the Mexican federal and state governments. “We are nearly at the point of making an official announcement,” Vallejo said. He added that BYD plans to create a manufacturing base, supply chain, and workforce in Mexico, calling for "fair regulations" similar to those extended to other global automakers.

The prospect of Chinese automakers entering North America has raised concerns among US and Canadian lawmakers. They fear that Chinese investments in Mexico could serve as a backdoor for Chinese products into the region. As the USMCA review nears, some Canadian officials have suggested restructuring the treaty to exclude Mexico, while US President-elect Donald Trump has proposed imposing tariffs of up to 100% on cars made in Mexico, citing fears over Chinese influence.

Although Sheinbaum dismissed any firm plans for a Chinese auto plant, she acknowledged ongoing discussions with Chinese officials, including a recent conversation with Chinese President Xi Jinping during the G20 summit in Brazil.

“I told President Xi that it’s essential to have strong ties between our countries, not just in trade but also in cultural and educational exchanges. However, our commitments under the USMCA remain our top priority,” Sheinbaum emphasized.

While cautious, Sheinbaum noted that Mexico is not entirely opposed to Chinese investment. “Each sector will be evaluated individually to determine how, under what conditions, and in what manner such investments might align with our economic goals,” she added.