In recent months, Nuevo León has seen an increase in Chinese investment in the entity and although the figure still does not exceed American investment, the trade war between China and the United States has had a significant impact on the restructuring of global value chains.

This situation positions Mexico as an attractive option for Chinese companies seeking to export to the United States (USA). For this reason, Chinese and North American companies with a presence in China are looking for opportunities in Nuevo León to locate part of their value chain in this area to comply with the new rules of origin of the T-MEC, avoid paying additional tariffs of Section 301 and reduce logistics times to the USA

Mexico has important advantages when comparing a similar production with China or other countries in Southeast Asia, not only because of Mexico's extensive experience of trade opening, having 14 free trade agreements with 50 countries, but also because of the robust legal network for facilitate investment with export impetus, such as IMMEX, PROSEC and the Eighth Rule.

However, although Nuevo León has extensive experience in attracting international companies by offering all the facilities and service coverage for the establishment of foreign companies, capturing investment projects of Chinese origin entails significant challenges.

Of interest: The industrial market of the Bajío will grow due to the increase in logistics activity

Among the main considerations and solutions to facilitate the attraction of Chinese investment is the urgency to start operations, guaranteeing that a quick start of operations affects the payment of taxes. Being 2 hours from the border, savings are generated in your logistics times.

It is important to clarify to Chinese companies the expectations and the duration it takes to complete all the registrations and processes under Mexican law, although operating under an unincorporated shelter services scheme reduces risks and time to establish and start operations.

Another consideration is the different cultural expectations and time zones, since when Chinese companies arrive in the state they always look for other companies from the Chinese community that are already established there and even look for industrial parks with Chinese-Mexican investment or that have other Chinese companies operating in them.

For those who could be your suppliers, having Chinese nationals who speak Mandarin is highly recommended as they make communication easier and build trust. There is no better interlocutor of the advantages of the state than having clients and equipment from the same country. In turn, the 13-hour difference between Monterrey and Beijing makes communication between the corporate and the plant more complicated.

Real estate development is in great demand from the Asian market and a high percentage of Chinese companies seek to buy the land and own their warehouse, unlike the market that moves mostly with warehouses for rent.

See also: ASK Chemical begins operations in Nuevo León

It also takes into consideration the idiosyncrasies and the relationship between the government and the private sector in China that are different from those of the Mexicans, although they share some such as hard work, productivity and the value of the family where they should focus. The success of the operation of a Chinese company in Mexico depends on clear communication, good will and seeking to build trust through these similarities.

Finally, as the laws and the relationship between the private and public sectors are very different between China and Mexico, Chinese companies have different expectations about the risks involved in an operation and how to reduce them.

It is important to work together in order to accelerate the start-up of a company, optimizing all processes within the framework of the law. For a Chinese operation to be successful, it must measure and align risks, especially when laws, expectations and levels of risk aversion are different.

In Solili you can consult industrial warehouses available in Saltillo and Tijuana

Original note