A Chinese tyremaker recently broke ground on a $400mn plant in central Mexico. But there will be no sign of such a Chinese project in Mexico’s inward investment data: the Sailun Tire company funding is being made through a Singaporean subsidiary.
This is not unusual or a secret — the structure is outlined in the company’s press release — but it will only fuel Washington’s wariness. US-based consulting firm Rhodium Group estimated in a report this month that the stock of Chinese investment in Mexico is about six times higher than shown in official figures.
With imports from China also surging, US lawmakers allege the country’s southern neighbour — and top trading partner — is increasingly being used by Beijing as a backdoor to avoid tariffs.
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