Introduction
In an era where any global stance or statement can lead to a disagreement with the United States, Mexico City’s President Claudia Sheinbaum’s decision to skip the 17th BRICS Summit in Rio de Janeiro was deemed prudent. Among the 10 full members of this influential South Global economies forum, only a few leaders dared to miss the event. The host, Luiz Inácio Da Silva, was joined only by India’s Prime Minister Narendra Modi.
The Trump Administration’s Priorities
The cautiousness of state leaders seemed to hold little importance for the White House. Instead, the Trump administration prioritizes mass illegal immigration control and combating transnational crime in Latin America. Moreover, curbing China’s expanding trade aggression is a key focus. In the current global context—marked by an arms race—emerging countries can no longer opt for multilateralism. Mexico has been urged to distance itself from the BRICS, particularly China and Russia, which are increasingly at odds with the United States.
US Stance and Its Impact on Mexico
Recent US diplomatic positions and the aggressive rhetoric from the American Society’s CEO have sent clear signals. Chinese companies have invested heavily in Mexico’s energy transition, financing solar and wind farms, as well as energy storage facilities in northern states like Sonora, Coahuila, and Tamaulipas. These investments align with Sheinbaum’s administration agenda to fight climate change and bolster energy self-sufficiency.
The China Global Investment Tracker records over $1.5 billion in energy projects investments since 2018, primarily through companies like JinkoSolar and Envision Energy. According to the Mexican Solar Energy Association, more than 20% of installed photovoltaic modules in Mexico come from Chinese suppliers.
Uncertainty regarding regulations, reputational risks, and hurdles in international payments have started to raise concerns among investors and developers, potentially slowing ongoing projects or limiting future expansions.
The Dilemma: Balancing Alliances
Mexico’s friction with its primary financial partner compels a fundamental decision, risking crucial capital for modernizing energy infrastructure and creating green jobs in regions reliant on these investments. The urgency to advance towards a clean and diversified energy mix might be thwarted by an uncertain financial environment lacking operational fluidity and certainty.
Secondary Effects
Envoys
A delegation of Coparmex-affiliated businesspeople will travel to Osaka, Kyoto, and Tokyo next week as part of a strategy to accelerate Mexican businesses’ internationalization, strengthen their presence in strategic markets, and equip them with tools for global success.
Mexico and Japan maintain a strategic economic relationship, supported by the existing Economic Association Agreement since 2005. Bilateral trade between the two nations surpassed $23 billion in 2024, while Japan’s cumulative investment in Mexico accounts for over 63% of total Asian investment in the country.
Concretos
With an evening edition, the Federal Register published 11 decrees signed by President Claudia Sheinbaum, reforming 27 legal frameworks during the LXV Legislature’s extraordinary session. These decrees now fully take effect and are obligatory under Mexico’s constitution.
Key Questions and Answers
- Q: Why did Claudia Sheinbaum choose not to attend the BRICS Summit? A: Sheinbaum’s decision was likely influenced by the Trump administration’s priorities, which diverge from those of the BRICS forum.
- Q: How have Chinese investments impacted Mexico’s energy sector? A: Chinese companies have invested in Mexico’s energy transition, financing solar and wind farms and energy storage facilities.
- Q: What are the potential consequences of Mexico’s strained relationship with its primary financial partner? A: Mexico risks losing crucial capital for modernizing its energy infrastructure and creating green jobs.
- Q: What is the significance of the Coparmex delegation’s trip to Japan? A: The mission aims to accelerate Mexican businesses’ internationalization and strengthen their presence in strategic markets.
- Q: What are the newly enacted decrees by Claudia Sheinbaum about? A: The decrees reform 27 legal frameworks, now fully effective under Mexico’s constitution.
