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Foreign Direct Investment
Between January 1999 and December 2008 Chinese companies made investments worth 69.1 million dollars in Mexico, an amount representing 0.03 percent of the foreign direct investment (FDI) registered in that period (215.993 billion dollars).
To December 2008, Mexico registered 512 companies with Chinese participation in their capital stock.
Chinese investment in the country was channeled mainly into the manufacturing industry, which received 40.5 percent of the total. Services attracted 38.7 percent, commerce 20.5 percent and the construction sector 0.2 percent.
Main Chinese investments in Mexico and investment plans under way.
| JINCHUAN GROUP | In 2008, this company acquired a copper deposit in Chihuahua from the Canadian company Tyler Resources. The amount of the investment was 214 million dollars. |
| FIRST AUTOMOBILE GROUP (FAW GROUP) | It sells autos in Mexico, in association with Grupo Salinas, through Grupo Elektra. At present it is building an assembly plant in Michoacán with a capacity of 100,000 units a year to produce a new line of vehicles in Mexico and export them to Central and South America. So far, around 20 million dollars have been invested in the plant and 56 million to establish the network of distributors. The total investment project is for 150 million dollars (with 2,000 jobs generated) which on principle will be divided into 50 percent on the part of GS and 50 percent FAW. However, the information received by ProMéxico indicates that almost all the resources invested to date have been contributed by Grupo Salinas. |
| HUAXI GROUP | It bought rights to operate copper mines in 2006. Said mines are located in the state of Sinaloa. Total investment was 25 million dollars. The number of jobs generated is not known. |
| CHINESE GIANT ENGINE COMPANY | In 2006 the company acquired an automobile assembly plant in Ciudad Sahagún, Hidalgo. This plant will manufacture mainly light trucks. Total investment was 17 million dollars. |
| GOLDEN DRAGON PRECISE COPPER PIPE CO. | In May 2008 it announced that it would establish a copper pipe factory in Chihuahua. The amount of the investment was 60 million dollars. It is expected that 900 jobs will be generated. |
| ZTE CORPORATION | It was established in Mexico in 2002, embarking on projects with the most important telecommunications operators at national level and in Central America. It has regional offices that function as sales offices, in Mexico City. The amount of the investment and the number of jobs generated are unknown. |
| HUAWEI TECHNOLOGIES | It was established in the country in the year 2000. At present it collaborates with the main operators in the telecommunications industry in Mexico, among them Alestra, América Móvil, Axtel-Avantel, Bestel, Iusacell, Maxcom, Telefónica and Telmex. The amount of the investment was 20 million dollars, and 220 jobs were generated. |
| TCL GROUP | It has a plant to manufacture RCA-brand television sets in Baja California, Mexico. The amount of the investment and the number of jobs generated are not known. |
| LENOVO GROUP | In 2008 it announced the establishment of a plant to assemble computers and related equipment in Nuevo León. The total investment is 21 million dollars and more than 1,000 jobs were generated. |
| CHINA WORLDBEST GROUP | It established a textile products plant (mainly cotton thread) in Sonora in 2002. The amount of the investment was 96 million dollars. According to 2005 data, this investment generated 2,800 jobs. |
| XINTIAN INT’L ECONOMIC AND TECHNICAL COOPERATION CO. | The only external verification of this investment indicates that it has to do with an agricultural Project in Campeche. However, the lack of information about it could mean that it was not concluded. The investment announced was 29 million dollars. |
Source: Ministry of Foreign Affairs, ProMéxico, companies, InterChina Consulting and media.
With regard to Mexican investment in China, the figures do not faithfully reflect the total amount, since large Mexican companies such as Seminis, Maseca and Vitro use their branches in other countries to make investments in China. For example, Seminis’ investment in China until 2004 was close to 400 million dollars, but for Chinese statistics it is a question of Korean capital, since the branch of the company in that country was the one that performed the transaction.
Among the main Mexican companies with presence in China are:
GRUMA |
It opened its first plant in Shanghai, China (2006). The amount of the investment was 100 million dollars and 200 jobs were generated. |
BIMBO |
It acquired the Chinese company Beijing Panrico Food Processing Center, a subsidiary of the Spanish company Panrico, S.A. (2006). The amount of the investment was 12 million dollars and 1,200 jobs were generated. |
SOFTTEK |
It acquired the company China I.T United to broaden its coverage of the Asian market (2007). The amount of this transaction is not known. The number of jobs generated was 200. |
GRUPO ALFA |
Grupo Alfa has had installations in China since 2006, dedicated to the manufacture of aluminum castings for the automotive industry through its subsidiary Nemak. The amount of the investment is 71 million dollars and 515 jobs were generated. |
Source: ProMéxico, companies and media reports.
Other Mexican companies that also have presence in China through associations or distribution and marketing operations are: Grupo Televisa (broadcasting of radio and television programs) Interceramic (floors and tiles), Tamsa (steel pipes), Grupo Villacero (steel), Aeroméxico, IDEAL (project and infrastructure analysis) and Femsa Cerveza.
