[Global Network reporter Zhang Xiaoya] Reuters released an "exclusive news" on the 18th, according to three informed Mexican officials, the Mexican federal government, under pressure from the United States, is keeping a distance from Chinese electric vehicle manufacturers by refusing to provide low-cost public land or tax cuts and other incentives. Before the disclosure of this news, the US side had raised concerns about the intention of Chinese electric vehicle enterprises to build factories and invest in Mexico. The Chinese side has indicated that China Mexico practical cooperation is a matter between two sovereign countries, a normal business activity carried out by enterprises of both sides based on international rules and market principles, and no third party has the right to intervene.
The National Palace in Mexico City, Mexico City
Reuters said that according to sources, the last meeting between Mexican senior officials and a Chinese electric vehicle company was in January this year. Anonymous sources said that Mexican officials made it clear during the talks that they would not give incentives as in the past, and would suspend any future talks with Chinese auto companies.
The report went on to say that the source attributed the move to pressure from the US government, especially from the US Trade Representative Office, which asked to exclude Chinese car companies from the free trade area established under the North American Free Trade Agreement.
According to the report, the Mexican President's Office did not immediately respond to the request for comment, and the Mexican Ministry of Economy also declined to comment. An official of the United States Trade Representative Office did not mention the pressure mentioned by the source when responding to Reuters' questions, but said that the "United States Mexico Canada Agreement" (the "US Mexico Canada Agreement" for short) was not intended to provide "a back door for China and other countries that may seek duty-free access to our market."
Office of the United States Trade Representative
Reuters mentioned that when the US move came to light, the White House spokesman said that US President Biden stated that he would not allow Chinese automakers to flood the market and threaten US national security.
For a period of time, the United States has frequently played up the threat theory, frequently talking about national security and taking trade protectionist measures against China's automobile industry. At a regular press conference in March this year, Mao Ning, spokesman of the Ministry of Foreign Affairs of China, said that Chinese cars are widely popular in the world, not because of the so-called "unfair" practices, but because of the technological innovation and excellent quality formed in the fierce market competition. China has always opened its doors to global automobile enterprises, and American automobile enterprises have always fully enjoyed the dividends of China's big market. On the contrary, the United States has resorted to trade protectionism, set up discriminatory subsidy policies and other barriers, which have seriously hindered the entry of Chinese automobiles into the American market. This politicization of economic and trade issues will only hinder the development of the American automobile industry.
At the regular press conference of the Ministry of Foreign Affairs on April 18, Lin Jian, the spokesman, also refuted Biden's accusation of China's "xenophobia", saying that, as a principle, we have always asked the US side to earnestly respect the principle of fair competition, abide by WTO rules, and immediately stop the trade protectionist measures against China. China will take all necessary measures to safeguard its legitimate rights. "I want to ask whether the US is talking about China or the US itself?" Lin Jian asked.
As early as the end of 2023, some media noticed that the United States raised concerns about the intention of Chinese electric vehicle enterprises to build factories and invest in Mexico. At the end of December, Shu Jueting, spokesman of the Ministry of Commerce of China, said that in recent years, many Chinese new energy vehicle enterprises have entered the Mexican market to carry out trade and investment cooperation and help local green development. Mexico has repeatedly said that it welcomes more Chinese enterprises to invest in Mexico. Shu Jueting also said that the practical cooperation between China and Mexico is a matter between two sovereign countries, a normal business activity carried out by enterprises of both sides based on international rules and market principles, and no third party has the right to interfere. We urge relevant countries to stop economic coercion.