Chinese EV makers are planning factories in Mexico—and the U.S. is worried it’s a ‘back door’ to undercutting the Big 3 carmakers

(Credit: Krisztian Bocsi/Bloomberg via Getty Images)

Electric vehicles made in China—boosted by large government subsidies—are rapidly being adopted around the world. Over the past three years, China’s EV exports have jumped 851%, the New York Times reported in October.

But in the U.S., tariffs affecting China’s EV makers have made it nearly impossible for them to compete against vehicles made domestically or imported from friendly countries. That doesn’t mean they aren’t planning an assault, however: Chinese EV makers are instead focusing on another North American market, one that could prove to be a stepping stone into the U.S.: Mexico.