Chinese industrial subsidies are equivalent to 50 percent of Mexico’s gross domestic product (GDP)—a figure that points to unfair competition, noted Ezequiel Tavernelli, executive director of the Latin American Steel Association (Alacero), while discussing the complex situation facing the sector across the region.

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Speaking at the Alacero Summit 2026, Tavernelli explained that the latest report places China’s industrial subsidies at 5 percent of its own GDP, amounting to nearly $980 billion annually.

He pointed out that this financial imbalance drives overproduction aimed at capturing global value chains, directly affecting countries like Mexico, where steel imports from the Asian nation have risen from 30 to 40 percent in recent years.

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Separately, Sergio de la Maza Jiménez, president of the National Chamber of the Iron and Steel Industry (Canacero), offered an encouraging outlook regarding domestic activity and productive investments. He noted that the national industry has invested $8 billion between 2024 and 2026—a period marked by modernization and import substitution—highlighting high-tech projects such as the one developed in northern Mexico by the industrial group Ternium.

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