U.S. President Donald Trump’s push to require U.S. market to bring jobs to the nation is opening investment opportunities for Chinese companies in Mexico, an executive with Industrial and Commercial Bank of China (ICBC), the nation’s largest lender, stated on Friday.
Worries of a hit to foreign investment ran high when Ford Motor canceled a $1.6 billion plant in Mexico’s state of San Luis Potosi, this year.
Trump applauded the choice as a significant triumph, however Ford stated that it put it down to decreasing demand for small vehicles.
Yaogang Chen, head of ICBC’s Mexico unit, stated U.S. market’s loss could be China’s profit.
“If some U.S. investment projects do not (take place), there has to be someone to invest. … If Chinese companies believe it is profitable, they will invest,” Chen stated.
In February, China’s Anhui Jianghuai Automobile Group and Mexico’s Giant Motors, together with supplier Chori, stated they would invest more than $210 million in an existing plant to develop SUVs in Hidalgo, Mexico.
Before Trump’s campaign against U.S. producers shipping jobs overseas, Chinese firms were making inroads into Mexico.
China’s BAIC Motor in June 2016 started selling in Mexico its own cars imported from China and has stated that it will look into developing an industrial plant in Mexico to produce cars and electric automobiles.
BAIC is currently a client of ICBC’s in Mexico.
ICBC, among the world’s leading banks by market capitalization and possessions, received its banking license in Mexico in 2014 and began operations there in mid-2016.
