This is John Batcher. Conversation was Professor Evan Ellis about China in the Americas.

I learned that Chinese companies from the mainland, understanding that the U.S. and its allies are moving the supply chain to other countries

because China is non-transparent unreliable and breaking down and dominated by

spying, state security and theft the Chinese companies have taken that into account and are

moving themselves with their investment capital to Mexico to present themselves as a Mexican

company.

Evan speaks at length about this.

It's underway.

As the U.S.

de risks by leaving the mainland, the mainland is coming to North America.

What is to be done? Good questions. Here's Evan Ellis, the US Army War College.

Interdependent economies and so one of the byproducts of our move towards decoupling or is the administration currently calls it

de-risking is that the Chinese companies who are worried about being cut out of value

added change because they're physically located in China, both distant and because

their Chinese identity, are now looking to relocate some of their operations into proximity to the United States,

especially in Mexico where, again, if you are able to be seen

as legally a Mexican company with Mexican capital, even though you are effectively a Chinese company, you can help preserve that access.

We've seen this in big ways, for example, with Elon Musk inviting his Chinese sub-component suppliers

to come to Mexico to join his big Tesla gig factory there.

But more broadly, you have large numbers of Chinese companies coming into the north of

McKillodora sector in places like Neueva Leone, and that's become one of the biggest stimuluses by some calculations

over 40% of new investment in that kind of patio warehousing distribution light manufacturing space in the north of Mexico oriented

...