China's Geoeconomic Interests In The Us Via Byd's Export To Mexico, 2022-2024

Evan Andhika Suci; Rahmi Fitriyanti; Agus Nilmada Azmi

doi:10.55681/economina.v5i8.3749

Authors

Evan Andhika Suci UIN Syarif Hidayatullah Jakarta, Indonesia
Rahmi Fitriyanti UIN Syarif Hidayatullah Jakarta, Indonesia
Agus Nilmada Azmi UIN Syarif Hidayatullah Jakarta, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i8.3749

Keywords:

geoeconomics, party-state capitalism, geoeconomic bridging node, BYD, US-China rivalry

Abstract

The electric vehicle sector is a primary arena for geoeconomic competition between the United States and China. This study analyzes China's geoeconomic interests by examining the export strategy of the electric vehicle manufacturer BYD into Mexico from 2022 to 2024. Using a descriptive qualitative method with a case study design, this research determines that Mexico currently fulfills only two of the three structural elements of a geoeconomic bridging node. Contextual positioning is achieved through USMCA membership, and Mexico has consistently attracted Chinese foreign direct investment, but coupling practices are constrained by strict rules of origin and the Inflation Reduction Act's Foreign Entity of Concern exclusion. The third element, strategic relational proximity, is fragile: in April 2024, the Mexican federal government halted incentives for Chinese electric vehicle manufacturers following direct demands from the United States Trade Representative. BYD's export expansion is a rational corporate response to domestic overcapacity and international tariff barriers rather than a mandate from Beijing, though the framework of party-state capitalism shows that BYD's commercial success advances China's broader geoeconomic interests. These findings test the limits of the bridging node concept in Latin America when confronted with the defensive mechanisms of a hegemonic state.

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