Velarde-Danache: Huge interest in China about investing in Mexico

2 weeks ago 46

REYNOSA, Texas – Mexican and foreign investment lawyer Ernesto Velarde-Danache always says it like it is. 

At Index Reynosa’s big binational expo and forum on Thursday, as one of the keynote speakers, he gave a typically lively and absorbing presentation about nearshoring. And, before that he gave a forthright interview to the Rio Grande Guardian International News Service.

Velarde-Danache said eight out of ten of the incoming calls to his office are from companies in China looking to invest in Mexico. 

“Nearshing, this is the hot topic right now,” Velarde-Danache said.

He pointed out that China is not as cheap at it used to be, making Mexico an attractive alternative for those that need to be in the North American market.

Asked if his company can keep up, Velarde-Danache answered affirmatively. The bigger question, he said, is whether Mexico can keep up. He noted that electricity and water supplies are a major concern.

Velarde-Danache noted that Nuevo León is capturing a lot of the nearshoring activity right now, with Tamaulipas an afterthought. Asked why this is, Velarde-Danache pointed to Tamaulipas’ past reputation as a dangerous state to live and work in. However, he said other states are just as dangerous these days. He said electricity shortages and unions are other factors Tamaulipas has to contend with. 

In his interview, Velarde-Danache also spoke about the political situation in Mexico. He said President Andrés Manuel López Obrador is not friendly to foreign investment. He predicted that if AMLO’s chosen successor, Claudia Sheinbaum Pardo, wins the presidency this year, there would be no difference in policy towards the business community. The only difference, Velarde-Danache said, would be the gender of the president. Plus, Sheinbaum does not have the charisma of AMLO.

Velarde-Danache said Mexico needs to market itself better across the world. He said he would also like to see a return to the days when northern Mexican states would join Texas in promoting the region overseas. 

As for the Rio Grande Valley, Velarde-Danache said he is impressed with the growth of Brownsville.

Here is the video interview with Velarde-Danache:

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