China plots major move south of the border as auto exec shares grim outlook for industry

China’s auto juggernaut is setting its sights on America — and it may not have to cross the US border to get dangerously close.Nissan Americas Chairman Christian Meunier expects Chinese automakers to start building cars in Mexico within two to three years, putting Chinese production within striking distance of the US market just as Washington scrambles to keep Chinese vehicles and technology out.Meunier says Nissan is already moving aggressively to slash costs in Mexico before the Chinese arrive, admitting the company’s current cost and supply structure isn’t good enough to compete with BYD.The biggest news, opinion and culture shaping California right now.

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Never miss a story He also described China’s advance through Latin America as “a big, fast invasion.”Mexico is already a major beachhead.Chinese vehicles accounted for one-third of new-car sales there in 2024, according to a July 2026 report from the Office of the US Trade Representative — up from just 4% in 2020.And China has plenty of metal to unload.Chinese factories can produce 55 million vehicles a year, while the country’s domestic market absorbs roughly 25 million, the report said.

That leaves enormous manufacturing capacity looking for customers.Mexico could be the obvious staging ground.Chinese-built vehicles sold there face a 50% tariff, but manufacturing locally would help companies avoid that barrier.Washington, meanwhile, is trying to slam the brakes on any Chinese advance into the US.Chinese electric vehicles already face a 100% US tariff.

Federal connected-vehicle restrictions also target automakers owned or controlled by China or Russia, beginning with vehicles for the 2027 model year and extending to certain hardware in 2030.Now lawmakers want those restrictions permanently cemented.Sens.Bernie Moreno (R-Ohio) and Elissa Sl...