18-May-19, Latin America Reports
At least four Chinese companies have invested in Mexico's border city of Tijuana since the start of this year. Large international companies are contributing to a growing trend of Latin American investments which are taking the region by storm. Allured by Mexico’s proximity to Silicon Valley and a plethora of developers who are willing to work across Latin America for smaller wages than their U.S. counterparts, international investors in the region are bound to increase their involvement, primarily in the natural resource and technology sectors.
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Image: Latin America Reports
It has long been known that China is increasingly interested in Latin America, a considerably under-invested region in comparison to other regions of the world. Although only Ecuador and Venezuela are currently part of the ambitious Belt and Road Initiative (BRI), Brazil and Argentina have also received hefty investments from Chinese businesses and tech companies. Mexico has also been eyed as an important partner in the BRI.
Qingdao-based electronics company, Hisense Co., for example, hoped the move to Mexico would open their sales market due to cheaper shipping costs than those from China. According to The Wall Street Journal, slowing economic growth in China has also led some companies to seek other emerging markets where labor costs remain relatively low.