Elon Musk’s Big Tesla Factory in Mexico Taps Chinese Suppliers, Stoking DC Fears

The value of Chinese auto parts made in Mexico and exported to the US reached $1.1 billion in 2023, up 15% over the previous year. Last year, there were 33 Chinese auto-parts makers registered in Mexico, 18 of which exported to the US, according to INA, Mexico’s national auto-parts industry association.

“You could see a situation where, if there is a real problem of Chinese parts coming across the border, whoever is president says, ‘We’re just going to demand more commitment from Mexico to stop that,’”  said Kelly Ann Shaw, a partner at law firm Hogan Lovells in Washington, who has focused on international trade.

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