Some Asian companies face the challenge of setting up factories with the aim of continuing to be part of the value chain.

Thus, the companies that manufacture an original product (OEMs) based in North America are aware of the importance of having their suppliers as close as possible to the region where they operate to avoid shortages of raw materials, components and parts.

Mexico exhibits enormous logistical advantages, such as its extensive communications network to move production from one point to another in the world with some ease, its trade agreements that exempt the payment of tariffs and the cheapness of its qualified labor force.

Check here: Mexican companies anticipate interruptions due to supply chain crises

About a hundred foreign companies, mostly of Chinese origin and linked to the automotive sector, are holding advanced negotiations with the Mexican authorities in order to comply with all the requirements to move to the Aztec territory and begin operating as soon as possible.

According to Raquel Buenrostro, head of the Tax Administration Service (SAT), the Mexican economy, but especially the industry, will be strengthened by Asian investment.

With the reforms carried out by the present administration for the coming years in fiscal matters, there will be an opportunity for a greater investment of foreign capital. In fact, 82 Asian companies want to come to Mexico.

Of interest: What makes Mexico attractive internationally to attract different industries?

According to the study "Monitor of the OFDI (outflows of direct foreign investment) from China in Latin America and the Caribbean 2021", which was prepared by the Academic Network of Latin America and the Caribbean, in the last two years Mexico has been strengthened with 5 thousand 831 million dollars of the 14 thousand million that Chinese companies have invested in the last 20 years in the national territory.

That is why, with the entry into force of the Treaty between Mexico, the United States and Canada (T-MEC), since last year the desire of Chinese companies has increased.

So far, in addition to providing multiple supply services to the automotive sector, the presence of Chinese capital is reflected in its five vehicle brands marketed in Mexico: JAC Motors, SAIC Motors (owner of the MG brand), BAIC, JMC and CHANGAN Motors.

In Solili you can consult industrial warehouses available in Mexico City and Guadalajara

Original note