The border with Mexico is one of America's most important economic corridors. Nearly $2 billion in bilateral trade takes place across it each day, facilitated by one of the world's most important free trade agreements, making Mexico America's second-largest trading partner.
That is why, given these close ties, U.S. officials were surprised to learn this year that Mexico was considering purchasing Chinese scanning equipment for its border checkpoints. The revelation was striking because the would-be seller has documented ties to the Chinese Communist Party (CCP) and People's Liberation Army (PLA), potentially giving Beijing access to data on goods entering the United States. This is one of several notable examples of the People's Republic of China expanding its activity in Mexico.
Not all interactions between Mexico and China threaten U.S. national security. After all, the latter remains America's third-largest trading partner. But cooperation or influence in sensitive economic sectors could undermine U.S. interests. To address this problem, U.S. leaders should make clear to their Mexican counterparts that significant Chinese activity on the border, in telecommunications, and in other areas tied to U.S. national security would create obstacles for continued cooperation with the United States. Consequently, U.S. assistance, financing, and commercial initiatives with Mexico should also focus on these areas, providing viable alternatives backed by Washington or other friendly partners.
American leaders have long worried about adversaries using Mexico as a platform to threaten U.S. security. During the Cold War, the KGB's Mexico City Station was a major center for Soviet espionage operations against the United States that focused on stealing advanced technology. In the current geopolitical environment, Mexico's economic importance and proximity to the United States make the country a tempting target for U.S. adversaries.
Over the past decade, China has expanded its footprint in Mexico. From 2013 to 2019, total trade between the two countries increased by 32 percent, outpacing growth in Mexico's overall trade and its trade with the United States. In 2020, two Chinese state-owned enterprises—China Communications Construction Corporation (CCCC) and CRRC Group—won contracts totaling $2.7 billion for significant Mexican infrastructure projects, including parts of President Andrés Manuel López Obrador's Maya Train and modernizing Metro Line 1 in Mexico City. Both firms, however, have faced U.S. sanctions due to their ties to the PLA and, in the case of CCCC, participation in China's illegal island-building in the South China Sea. These projects, while not an immediate security threat to the United States, are signs of China's increasing influence in Mexico, a long-term challenge for U.S. interests.
A more pressing concern, however, is the success of Huawei in Mexico. Since 2011, the Shenzhen-based telecommunications giant has won at least four major contacts with Mexican cellular providers. The company claimed in 2019 that it ran more than half of the 4G network hardware in the country. In 2017 Huawei won the contract to supply equipment for most of Mexico's new nationwide wholesale wireless communications network, which could serve as the primary vehicle for Mexico's future 5G rollout despite problems with the project. The company also partnered with the Mexican government to build more than 30,000 public WiFi hotspots across the country.
Huawei's expansive presence in Mexico creates significant long-term security risks for U.S. cooperation and commercial activity. The U.S. government has warned for years of the security risks Huawei networks pose for cooperation with allied governments and the operations of U.S. companies overseas because of Huawei's documented ties to the PLA and China's security services. Huawei is also subject to China's Cybersecurity Law, which requires technology companies to provide assistance to state security organs. Having a company with such close ties to Beijing controlling large parts of Mexico's digital infrastructure could make it increasingly difficult to sustain U.S.-Mexico security and economic cooperation if guardrails are not put in place to protect data flows and intellectual property.
The United States faces several significant challenges in Mexico. As U.S. leaders work to address the border crisis, trade disputes, and other problems in the bilateral relationship, they cannot lose sight of Mexico's strategic importance. U.S. policy decisions and priorities related to Mexico must address China's growing presence, both by communicating red lines in sensitive sectors to the Mexican government and by providing viable alternatives to Beijing-backed projects and technology. Mexico remains an important economic and security partner for the United States, and it cannot become a vector for adversaries to undermine America's security so close to home.
Connor Pfeiffer is executive director of the Forum for American Leadership and former national security advisor to a member of the U.S. House Committee on Appropriations and Permanent Select Committee on Intelligence. His Twitter handle is @ConnorPfeiffer.
The views expressed in this article are the writer's own.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
