Chinese exports and investment in Mexico are quickly rising. The Trump team fears its neighbor could be used as a backdoor to the U.S. market.

All along the 2,000-mile border, business leaders, border agents, migrants and their advocates are bracing for change in U.S. policies on trade and immigration.

Mexico is planning to establish a “task force” to involve US companies in the process of reducing imports from China, the country’s economy minister told a group of auto suppliers at a private meeting Friday in Detroit.

China has strengthened trade with Latin America at the expense of the U.S. But Donald Trump, who threatens to raise tariffs on Mexico, could upend those ties.

Mexico’s government on Monday launched a plan to shrink its yawning trade deficit with China and attract investment, in an olive branch to Donald Trump’s incoming US administration.

The proximity to the US market, combined with cheap labour, has made Mexico an attractive location for Chinese manufacturers

Mexico, currently the No. 12 economy according to World Bank data, aims to crack the Top 10 by 2030, Sheinbaum said. The nation will do so by boosting local manufacturing and swapping out imports, creating manufacturing jobs and cutting through red tape to attract investments in the country, Sheinbaum said.

Chinese companies looked to Mexico more than most. Their investment in the country has surged. Mr Trump (who has already threatened to apply a tariff of 25% to Mexican imports “on day one” unless it stops migrants and drugs from illegally crossing the border) believes those firms are using Mexico as a tariff-free gateway to the United States.

No, these aren’t trendy tech startups or flashy new cryptocurrencies. They’re Chinese automakers rapidly gaining traction in Mexico’s car market. The deals with the regional sports networks are for multiple years, and in line with moves Comcast/Xfinity has made in approximately 30 other markets.

The European Union and Mexico revived a stalled free trade agreement on Friday, days before the return to the White House of Donald Trump, who has threatened both sides with tariffs.

Panama is part of a bigger piece of real estate that Mr Trump has his eye on. He wants to influence territory and infrastructure close to the United States. He views Mexico as a source of unwanted migration,

China has strengthened trade with Latin America at the expense of the U.S. But Donald Trump, who threatens to raise tariffs on Mexico, could upend those ties.