IPC International Community magazine an association member publication
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IPC COMMUNITY 15 WINTER 2024 than 15%, overtaking China for the first time in two decades. Mexico solidified its place as the United States' top trading partner in 2023, surpassing China and Canada in two- way trade. The upward trajectory of foreign direct investment (FDI) into Mexico is poised to maintain its momentum, reflecting a robust and growing interest in the country's eco- nomic landscape. Mexico attracted over $106 billion in FDI announcements during the first nine months of 2023. More than 40% of these investments ($42 billion) originated from U.S.- based companies opening facilities in Mex- ico 1 . Chinese companies are also playing a big role in Mexico's growth. Of the 5.09 million square feet of space leased in Mexican indus- trial parks by foreign companies at the end of Q3 2022, approximately 80% were by Chi- nese-based companies, with U.S., Japanese, and Korean companies making significant investments 2 . China's FDI into Mexico has risen substan- tially over the past decade, increasing from $38 million in 2011 to a peak of $386 million in 2021, before a slight decrease to $282 million in the following year. Despite representing just around 1% of Mexico's total FDI, China has become one of the fastest-growing sources of foreign investment in the country. A signifi- cant portion of this investment is flowing into computer equipment manufacturing. Approx- imately $213 million was invested in 2021 and $69 million in 2022 in this sector 3 . The automotive sector is also a large driver of both investment in Mexico as well as the recent uptick in production. In the first half of 2023, the automotive sector accounted for 35% of all nearshoring demand in Mex- ico 4 . Mexico's automotive industry received a record-breaking $5.024 billion in FDI for vehi- cle manufacturing in the first half of 2023. This is a 67.7% increase from the same period in 2022. The expansion of Mexico's automotive