According to Reuters, Mexico is considering offering tax credit incentives to attract foreign companies to invest and produce in Mexico, focusing on electric vehicles, semiconductors, rare earth minerals, batteries and electronics, Luis Rosendo Gutierrez, deputy minister of foreign trade, said in an interview.

Currently, the new Mexican government is evaluating how to attract more investment as companies are looking to relocate supply chains closer to their main markets and the United States is experiencing a turbulent and increasingly protectionist period on the eve of the US presidential election.

Luis Rosendo Gutierrez said: “We are seriously considering offering tax credit incentives very similar to those in the United States and Canada. We think this will attract many foreign companies to invest in Mexico.”

Luis Rosendo Gutierrez said that these tax credit incentives will apply to any company interested in investing in Mexico, including Chinese companies. But he stressed that Mexico will not be a “springboard” for Chinese companies to enter the United States.

An internal government document seen by Reuters shows that Mexico has begun working with several companies, including electronics manufacturer Foxconn, chipmaker Intel, U.S. automaker General Motors, logistics company DHL and automaker Stellantis, to determine which products can be produced in Mexico instead of imported from Asia.

The document states that Mexico is seeking to replace imports from China, Malaysia and Vietnam. In addition, Luis Rosendo Gutierrez declined to disclose more details about the companies mentioned in the document.

It seems that Mexico’s attitude towards Chinese automakers may have changed. In April this year, Mexican officials reportedly said that Mexico would not provide local incentives such as low-cost public land or tax cuts to Chinese automakers due to pressure from the United States.

A representative of the U.S. Embassy in Mexico declined to comment on the above report.