China 'Recognizes Mexico’s Strategic Value' As It Eyes Greater Influence With US Neighbor

China has drastically ramped up its foreign investments in Mexico in the private and government sectors over the last decade, which has prompted some concern as experts warn there is a financial and political upside for Beijing as U.S.-Mexico relations falter. 

In 2021, China's foreign direct investment (FDI) in Mexico reached a historical high despite restrictions Washington slapped on Beijing exports as the trade war kicked off. 

But Eric Farnsworth, vice president of the Americas Society and the Council of the Americas, told Fox News Digital that "China increasingly sees opportunity in Mexico, and the investments are increasing."

The economic development and trade expert explained that the spike in Chinese investment boils down to two main contributing factors: Beijing’s attempts to bypass Washington’s sanctions and deteriorating relations between the U.S. and Mexico.

"It's convenient to try to circumvent sanctions…by going to Mexico and then producing in Mexico and then trying to get into the U.S. market," Farnsworth said. […]

Though when looking at China’s FDI in Mexico, it is not just private entities looking to play into the moment, Farnsworth said.

"China’s relationship with Mexico is not terribly strong, but the more the relationship between Mexico and the United States deteriorates…China sees opportunity there," he said.

"Why are [Chinese companies] paying those [prices]? Because they're directed by the government, which is interested in those assets for strategic reasons," Farnsworth said. 

The development expert explained that China’s varied investment interest, both in the private and government sectors, are essentially "one and the same." 

"It's almost universally government directed," he said. "The strategic investment decisions, where to go, how much to spend, what the benefits are to China, etc., are all driven by the central government."…

Read the full article.