China funding port constructions in Mexico to shorten shipping routes to U.S. back door

Jeffrey A. Newman

China is funding the expansion of the port of Veracruz Medico through China Harbour Engineering company. The expansion project will make Veracruz the second largest port in Mexico. In addition, the Port of Manzanillo is undergoing a $2.7 billion expansion project that will make it Latin America’s largest maritime gateway. Chinese companies like Hutchinson Whampoa have control over piers in several Mexican states, including Baja California, Colima, MichoacĆ”n, and Morelia. The purposes of these investments and expansions include:

  • Enhancing trade connectivity between China and Mexico
  • Facilitating China’s access to Latin American markets and resources
  • Strengthening China’s global maritime influence
  • Supporting China’s Belt and Road initiative in the region

Additionally, several major ocean carriers, including Chinese companies, are setting up dedicated China-to-Mexico shipping routes, indicating an increased push by China into Mexico’s maritime section.

In recent years, direct investment from Chinese companies into Mexico has experienced significant growth. This surge is evident in the figures, rising from $38m in 2011 to $386m in 2021. Notably, Chinese companies now represent the fastest-growing source of foreign investment in Mexico. Their investment predominantly targets the manufacturing sector, encompassing projects ranging from computer equipment such as Lenovoā€™s mega site investment in Mexico on computer, server and computer rack assembly, construction equipment led by Lingong Heavy Machinery, furniture led by Man Wah, and electric vehicles with BYD and Chery making massive investments.

Jeff Newman JD MBA, represents whistleblowers nationwide relating to customs and tariff fraud concerning imported Chinese goods as well as corporate whistleblowers in major claims under the False Claims Act (Qui Tam), and SEC, CFTC and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217