2016 G20 State Leaders Summit in Hangzhou (Photo : Getty Images)
While tensions between the U.S. and Mexico are intensifying because of Trump's plan to build a border wall between the countries, China is taking this opportunity to strengthen ties with the latter. It looks like both countries are making moves in light of the uncertainty on a global scale.
Trump has been engaging in a war of words with almost everyone, including their neighbor down south. The U.S. President has signed an executive order that calls for the building a wall along the US-Mexico border, to keep migrants from crossing. About 2,000 miles of border separates the U.S. and Mexico.
Because of this certain executive order, a border tax of 20 percent might be implemented, putting the North Atlantic Free Trade Agreement (NAFTA)--involving the U.S., Canada and Mexico--under threat.
Mexico houses the factories of automakers from around the world, most of which have a particular interest in the easy access to the U.S. market.
But Trump might just change everything as he threatens to impose a 35 percent tax on cars made in Mexico and sold in the U.S., causing uncertainty in a key part of the Mexican community. The U.S. head of state threatened carmaker General Motors with a big border tax over its manufacturing operations in Mexico.
While U.S. automakers are being threatened, a Chinese automaker has reached a $212 million deal with Mexico. Giant Motors Latinoamerica and JAC Motors will lead to the manufacture of two SUV models, and possibly an electric vehicle in the state of Hidalgo.
And it looks like the Mexican government is also looking to a reinforced partnership with China.
"We want to attract investment and continue to strengthen our ties with China in a comprehensive way," said Luis Videgaray, Mexico's Foreign Affairs Minister.
China hasn't pumped in much investment in Mexico in the past years. But with the uncertainties under the new Trump administration, it looks like China is prepared to fill in the vacuum that the U.S. will create if things go bad.