The Peter Zeihan Podcast Series

Things I (Don't) Worry About - Chinese Investment in Mexico || Peter Zeihan

Nov 28, 2024

Worries about Chinese investments in Mexico may be overblown. The narrative suggesting extensive industrialization for exporting to the U.S. is largely a myth. Analysis of foreign investment data shows China's limited presence due to infrastructure challenges. The conversation also contrasts Canadian investments in North America with those from China, highlighting the significance of agreements like NAFTA II. Lastly, concerns about China's economic decline are discussed, affecting the investment landscape in the region.

04:48

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Quick takeaways

Chinese investments in Mexico are exaggerated, as they rank low in foreign investment, highlighting the narrative's lack of factual basis.

Future scenarios may require North America to expand its industrial capacity, especially if reliance on China continues to decrease.

Deep dives

The Misconception of Chinese Investment in Mexico

There is a widespread belief that China is building industrial plants in Mexico to bypass NAFTA regulations, but this assertion lacks foundation. In reality, China does not rank among the top foreign investors in Mexico, as its investment data is virtually nonexistent according to official statistics. This misconception is reminiscent of earlier fears surrounding Chinese farmland purchases, which also proved exaggerated, with Canada being the primary foreign entity owning U.S. farmland. The lack of substantial Chinese investment indicates that these narratives may be products of a post-truth environment where rumors gain traction without basis.

Debunking Myths of Chinese Investment in Mexico

2min

Assessing Foreign Investments: Canada vs. China in North America

3min

If you're getting worried about Chinese investments into infrastructure in Mexico, it might be time to switch the TV off and take a walk...because that narrative is a complete fabrication.

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