Sheinbaum Delivers Second Annual Report Amid FDI Growth and US Screening

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President Claudia Sheinbaum delivered her second annual report at Mexico City’s Zócalo on 1 September, highlighting a record US$34.97 billion in foreign direct investment (FDI) for the first half of 2026. This headline figure faced scrutiny from opposition critics, as central bank data indicated net FDI actually fell 11.7 percent year-on-year to US$24.81 billion. The report occurred amid ongoing pressure from the United States, which is conditioning the USMCA review on Mexico establishing a national-security investment screening mechanism aimed at curbing Chinese capital. Additionally, imports of Chinese-made vehicles declined by approximately 31 percent in the first half of 2026 following the government's implementation of 50 percent tariffs on non-FTA automobiles in January.

Consequences

Mexico’s potential adoption of a national-security screening regime could chill future Chinese capital inflows, which have totaled an estimated US$6.1 billion in auto greenfield investment over the last three years. The upcoming 2027 budget package will serve as a critical test of the government's fiscal trajectory following recent increases in public physical investment.

Sources

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