We are pleased to open our WMP Representation Branch Office in Shanghai. WMP Mexico Advisors is expanding its portfolio to also enable Chinese companies to enter the Mexican market. In an interview, WMP’s Managing Director and Founder Thomas Wagner explains why Mexico is currently attractive to Chinese companies and how exactly WMP helps with market entry in Mexico.
What are the advantages subsidiaries in Mexico have to offer Chinese Companies?
In the wake of USMCA, local production in the North American market is becoming more and more important and so will be in the years to come. This means Chinese companies wanting to sell their products in the North American market will gradually have to move to local production to avoid extra tariffs. This is the reason why producing in the US, Canada or even Mexico has become so attractive.
How is WMP helping Chinese companies?
Through our representation office in Shanghai, we would like to give Chinese companies the opportunity to get information about Mexico beforehand as well as the possibilities for investing in Mexico in their own language. Then, if the Chinese company feels like coming to Mexico, our Mexico team will help them. Firstly, we will provide support regarding market analysis and location issues for these are essential in the successful startup phase. Secondly, we advise on administration, settlement and obtaining the “Business License”. We get involved in all processes to get the company started in Mexico and we also stand by them after a successful settlement.
For which companies or industries is Mexico particularly attractive?
First and foremost, the automotive industry, because there are some Chinese manufacturers supplying American companies, such as the “Big 3”. To date, these Chinese suppliers are supplying from China but after USMCA, it now makes sense to do this business from North America and, for example, from Mexico. Besides the automotive industry, Mexico is also extremely attractive as a location for companies that produce industrial or consumer products.
How can WMP help with intercultural communication?
Our WMP Desk is also in Shanghai – there we rely on experts with Chinese backgrounds and international experience. Just as well, we have Mexican and international experience here in Mexico. By bringing these intercultural issues together, we make it easier for both cultures to work together in the way to success.