The U.S. International Trade Commission (USITC) industry report indicates sustained growth in Mexico’s intermediate goods imports from China. These shipments primarily supply Chinese-operated assembly facilities in Mexico for localized automotive and electronics production.
China-Mexico automotive parts trade has surged by 165% over the past decade: imports were only US$2 billion in 2013, but reached US$5.3 billion in 2023. According to data from The Economist, the three major categories of body parts (US$711 million), braking systems (US$613 million), and wheel hubs (US$562 million) accounted for over 36% of the total, reflecting Mexico’s increasing dependence on China for high-end parts.
China maintains its position as Mexico’s second-largest auto parts supplier while expanding its competitive edge through technology upgrades. Three investment projects totaling US$650 million establish lightweight aluminum component bases in Mexico, enabling tariff avoidance via the “Mexican Value-Added Model”.
This model faces USMCA rules of origin requiring 60%-75% regional value content. Nevertheless, components made in Mexico still achieve 18%-22% lower overall costs compared to direct exports from China, creating substantial tariff arbitrage opportunities.
The USITC warns that Chinese companies are systematically laying out this model, and expects the number of companies replicating it to double within three years. 78% of Chinese companies have positioned Mexico as a “North American manufacturing hub,” relying on the US-Mexico-Canada Agreement (USMCA) to enter the US and Canadian markets with tariffs below 3.8%, while also enjoying the logistics benefits of 72-hour fast customs clearance.
Source：In U.S. trade war with China, Mexico is emerging as the big winner – The Mexico City Post
MEXCHAM continues building bridges between Mexico and China.
中国墨西哥商会将继续作为墨西哥与中国之间的桥梁，不断努力。
Cámara de Comercio de México en China
(MEXCHAM)中国墨西哥商会
www.mexcham.org
bj.info@mexcham.org
