Monday, June 30, 2025

Chinese investment in Mexico has risen fast, but still lags behind other FDI

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Mexican and Chinese business people at Hofusan Industrial Park
There has been a lot of attention on Chinese companies increasingly investing in manufacturing in Mexico in recent years. (Hofusan Industrial Park NL/X)

Chinese investment in Mexico has increased significantly in recent years, but the East Asian nation is still a long way off matching the outlays of countries such as the United States and Spain.

Economy Ministry (SE) data shows that Chinese foreign direct investment (FDI) in Mexico totaled US $2.073 billion between 2006 and March 2024. Just over 55% of that amount was invested in the country since 2020.

Chart showing annual flow of FDI from China to Mexico from 2000
This chart shows the FDI in Mexico from China since 2000. (Data México/SE)

Chinese investment in Mexico peaked in 2022 at $569.7 million, a figure that accounts for 27% of the country’s total FDI in Mexico over the past 18 years.

The amount represented an increase of 335% compared to 2017, 845% compared to 2012, and a whopping 4,534% compared to 20 years earlier in 2002.

China was among the top 10 investors in Mexico in 2022, but its total investment was dwarfed by that of the United States, whose FDI in Mexico totaled $20.2 billion that year, according to the SE.

China was not among the top 10 investors in Mexico last year, with its FDI falling to $159 million, nor was it among the top 10 in the first quarter of 2024.

The top 10 countries of origin for foreign direct investment in Mexico in 2023 did not include China. (SE)

China’s total investment in Mexico between 2006 and the first quarter of 2024 represents just a small fraction of the FDI of countries such as the United States and Spain.

The Reforma newspaper reported Tuesday that the United States’ FDI in Mexico between 2006 and the first quarter of this year was just over $239 billion, while Spain’s outlay during the same period was just under $57.5 billion.

Why does the data matter?

There has been a lot of focus on Chinese investment in Mexico lately, with several media outlets, including the BBC and The Economist, reporting that Chinese companies are using Mexico as a “backdoor” to the United States as products made here can be exported tariff-free to the U.S.

Increasing attention is also being given to the increase in Chinese exports to Mexico, and the proliferation of Chinese-operated wholesale establishments in downtown Mexico City.

A street vendor sells Hello Kitty merchandise on the sidewalk
Local retailers in the historic center say they have been pushed out by Chinese businesses that sell cheap products to street vendors. (Cuartoscuro)

The data on Chinese investment in Mexico is important as it indicates that Chinese companies have not yet collectively established an overly significant presence in the Mexican economy, despite claims — or impressions — to the contrary. Companies from the United States, Canada, Spain, Germany and various other countries have invested much more in Mexico than Chinese firms.

Jorge Guajardo, a former Mexican ambassador to China and a close observer of Chinese investment in Mexico, said on X that the data showing much greater investment in Mexico by the U.S. and Spain than China provides “context for those who claim China is using Mexico as a manufacturing base to enter the U.S.”

Does the data reflect all Chinese FDI in Mexico?

As Mexico News Daily reported in late 2023, it appears that not all Chinese money that flows into Mexico is counted as such.

The reason, according to Enrique Dussel Peters, an economist and coordinator of the Center for Chinese-Mexican Studies (Cechimex) at the National Autonomous University, is that some Chinese investment comes into Mexico via United States subsidiaries of Chinese companies.

The FDI inflow is thus recorded as coming from the United States, when for all intents and purposes the money came from China.

According to Cechimex, Chinese investment in Mexico between 2001 and late 2022 totaled $17 billion, more than six times higher than the amount recorded by the SE between 1999 and March 2024.

China is not yet a top investor in Mexico, but it could be soon  

While China is not yet close to matching the outlay of the top investor nations in Mexico, the situation could change — if Chinese companies act on their investment announcements.

According to the SE, Chinese companies made investment announcements totaling $13.19 billion last year. China was second in the “expected investment” rankings in 2023, behind only the United States.

Two Chinese companies, LGMG and Jetour, made announcements totaling $8 billion last year, or over 60% of the total expected FDI for China. As the $13 billion has only been announced, rather than invested, it has not yet shown up in the Economy Ministry’s FDI data.

BYD car in production
According to the Chinese company’s Mexico director, the proposed BYD EV plant would generate 10,000 jobs. (BYD México)

This year, leading electric vehicle manufacturer BYD is among the Chinese companies that have committed to invest in Mexico. It has not yet announced how much it intends to invest in a plant in Mexico or where it will be located, but the outlay on a facility that is slated to create 10,000 jobs would be significant.

If LGMG, Jetour, BYD and other companies go ahead with their announced projects — which is no certainty — China could shoot up the FDI rankings for Mexico in the near future.

One potential barrier to future Chinese investment in Mexico is Mexican government opposition to it.

While Mexico is currently welcoming Chinese investment, Finance Minister Rogelio Ramírez de la O said last Saturday that the government is “considering” changing its investment policy with regard to China. Without providing specific details, he suggested that Mexico could seek to prevent or limit Chinese investment in some sectors.

With reports from Reforma 

Peso slides after Tesla setback and inflation spike

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Image of US currency bills of various denominations in a pile around a single Mexican peso coin, which hit a a 4-month high on Friday
Despite tariff uncertainty, the peso hasn't been this strong since November. (Shutterstock)

Tesla CEO Elon Musk’s statement that the company’s planned “gigafactory” project in Mexico is currently “paused” was among the factors that caused Mexico’s peso to depreciate against the U.S. dollar on Wednesday morning, according to Mexican economic analyst Gabriela Siller.

Compared to its closing position on Tuesday, the peso depreciated around 1.5% to reach 18.42 to the greenback on Wednesday morning, according to Bloomberg data.

Banco Base analyst Gaby Siller’s X post in which she cited Elon Musk’s announced decision to pause Tesla’s gigafactory construction in the state of Nuevo León as a factor in the peso’s drop in value.

The currency subsequently recovered slightly to trade at 18.37 to the dollar shortly after 5 p.m. Mexico City time.

Siller, director of economic analysis at Mexican bank Banco Base, attributed the depreciation of the peso to three factors:

  • Concern about the government’s proposed judicial reform.
  • Tesla’s announcement that it will “postpone” a decision about the planned Nuevo León gigafactory until after the Nov. 5 presidential election in the United States.
  • The publication of data on Wednesday that showed that inflation in Mexico continued to increase in the first half of July.

The judicial reform 

Siller said that the proposed judicial reform — which could be approved by Congress as soon as September — “generates fear because it could damage legal certainty” in Mexico.

Such a scenario, she added, “would considerably affect investment growth in Mexico.”

The reform, if approved, would allow Mexicans to directly elect Supreme Court justices and other judges from candidates that would be nominated by the sitting president. Critics argue that the reform would weaken rather than strengthen the judiciary.

After Morena candidate Claudia Sheinbaum and the ruling Morena party won comprehensive victories in the June 2 presidential and congressional elections, the peso depreciated sharply on concerns that the new Congress could approve the proposed judicial reform and other controversial constitutional reform proposals put forward by President Andrés Manuel López Obrador, including one that aims to disband a range of autonomous government agencies.

Claudia Sheinbaum at a meeting with legislators
Morena Party President-elect Claudia Sheinbaum’s victory on June 2 has reignited concerns that a judicial reform bill coming up for vote in September may pass easily, as the election results also gave Morena lawmakers majorities in both houses of Congress. The Morena-proposed bill would make Supreme Court justices directly elected officials nominated by the president. (Cuartoscuro)

What did Musk say about the Mexico Tesla gigafactory? 

During Tesla’s Q2 earnings call on Tuesday, Musk was asked for an “updated timeline” for its proposed US $10 billion Nuevo León gigafactory, which the company first announced in March 2023 but hasn’t started building.

“We currently are paused on Giga Mexico. I think we need to see where things stand after the [U.S. presidential] election. Trump has said he’ll put heavy tariffs on vehicles produced in Mexico,” he said.

“So it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So we kind of need to see the way things play out politically,” the Tesla CEO added.

In an X post on Tuesday, Siller said that if Trump wins the U.S. election on Nov. 5, “it’s possible that Tesla will never arrive in Mexico.”

Trump has threatened to impose tariffs on vehicles made in Mexico by Chinese companies, but he hasn’t publicly announced any plan that would affect vehicles made here by Tesla, a U.S. company based in Austin, Texas.

Various observers questioned the cogency of Musk’s remarks.

A tale of two interest rates and Mexico’s peso

Mexican national statistics agency INEGI reported Wednesday that Mexico’s annual headline inflation rate increased to 5.61% in the first half of July. In better news, the annual core inflation rate, which excludes volatile food and energy prices, fell to 4.02%, continuing a downward trend that began in early 2023.

Some analysts believe that the Bank of Mexico will cut its key interest rate on Aug. 8 due to core inflation’s continuing decline. Such a move could affect the peso adversely as it would reduce the differential between the Bank of Mexico’s key interest rate (currently 11%) and that of the United States Federal Reserve (5.25%–5.5%), provided the Fed doesn’t cut its federal funds rate next week.

The peso has benefited for an extended period from the significant difference between the two interest rates.

The peso appreciated to an almost nine-year high of 16.30 to the dollar in April, but it depreciated to 18.99 to the greenback not long after the elections.

At 18.37 to the greenback, the peso is 7.4% weaker than it was just before Mexicans went to the polls on June 2.

With reports from El Financiero and Debate  

Airbus Helicopters and ITP Aero expanding operations in Querétaro

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Airbus employee in a factory hangar working on an aircraft
Airbus will add 600 new jobs in Querétaro with its expansion of its facilities in Colón, Querétaro. (Airbus)

Aerospace companies Airbus Helicopters and ITP Aero will be expanding their existing facilities in Querétaro, adding a total of 800 jobs in the state, according to announcements made by the companies. and the state government. 

The announcements were made on the three parties’ social media accounts during the Farnborough International Airshow in the United Kingdom, which began Monday and lasts until Friday.  

Officials with ITP Aero pose in a horizontal line with Queretaro Governor Mauricio Kuri in front of an artistic turbine display.
ITP Aero and Airbus officials both announced their expansion plans after signing agreements with Querétaro Governor Mauricio Kuri, center, at the Farnborough International Airshow in Hampshire, England this week. Here, Kuri poses with ITP Aero heads, including Group CEO Eva Azoulay to his left and General Director Carlos Alzola to his right. (ITP Aero)

Querétaro, a state in central Mexico, is well-known as a hub for aerospace manufacturing, as well as for factories owned by foreign automotive and electronics manufacturing companies. 

Querétaro Governor Mauricio Kuri González celebrated the news of the two companies’ expansion in his state on the social media platform X, crediting Querétaro residents’ talent. 

ITP Aero creating 200 new jobs

According to Kuri, the ITP Aero expansion of its production center in Querétaro will add 200 new jobs in the state; that’s in addition to 200 jobs created by the company in Querétaro last year. 

In a video shared on social media, Kuri noted ITP Aero’s contribution to Quéretaro’s development as an aerospace industry center: it was the first company in the field to settle in the state 26 years ago. 

“After this company arrived, all the others followed,” Kuri said, adding that the state was “very grateful” for the trust ITP had shown in Querétaro. 

Airbus Helicopters Executive Vice President of Operations Laurent Mazoue and Queretaro Minister of Sustainable Development Marco Antonio del Prete shake hands while posing for a photo and holding up an agreement between Airbus and the Queretaro government
Airbus Helicopters Executive Vice President of Operations Laurent Mazoué, left, signed its expansion agreement with Querétaro officials, saying that the state is “one of the pillars of our industrial strategy.”

General Director of ITP Aero Carlos Alzola Elizondo noted the aerospace industry’s growth and the relevance of the products the company manufactures in Querétaro. 

“Our plant is growing; aeronautics is growing and so is our presence in Querétaro,” Alzola said “We are very grateful for the support we have received to continue growing ITP’s industrial activity.” 

ITP Aero, a Spanish company, designs, develops and manufactures aeronautical industrial engines and components for commercial and defense aviation. It employs more than 5,000 people across facilities in Spain, the U.K., Mexico, the United States, Malta and India.

Querétaro, crucial for Airbus’s expansion

At the event, Querétaro and Airbus Helicopters officials also signed an agreement to expand the company’s industrial activities and new production processes at Airbus’s manufacturing plant. In a post on X’ Kuri said that this investment will amount to US $49 million and will help create 600 jobs. 

The expansion responds to the transformation of the company’s global supply chain and seeks to address the increased production of Airbus single-aisle commercial aircrafts.

The company’s Executive Vice President of Operations Laurent Mazoué said that “this expansion is further proof of Airbus Helicopters’ commitment to continue investing in Mexico’s aeronautical industry,” as Querétaro is “one of the pillars of our industrial strategy due to its competitiveness, the skills of its teams and its ability to satisfy our customers.”

The French company’s Querétaro plant produces hatches, emergency exit doors, bulk cargo doors and cargo doors for single-aisle and wide-body aircraft. It also produces subassemblies and modules for helicopters for Airbus final assembly lines and Airbus plants in Europe.

With reports from El Economista and Reforma

Mexico’s rhythmic gymnastics team to make Olympic debut

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Mexico’s rhythmic gymnastics team holding Olympic rings
Mexico’s rhythmic gymnastics team will compete in their first-ever Summer Olympics. (CONADE)

Mexico’s rhythmic gymnastics team is preparing to compete in its first-ever Summer Olympics.

In a sport dominated by Russia, Bulgaria, Spain and other European countries, the five-woman Mexico squad qualified with a silver medal at the Pan American Games last year in Santiago, Chile, earning them a ticket to Paris.

The Mexican rhythmic gymnastics team
The individual all-around competition begins on Aug. 8 at the new Porte de la Chapelle Stadium in Paris. (CONADE)

“The moment when we qualified for the [2024] Olympic Games was very spectacular,” recalled team member Adirem Tejeda from Mérida, Yucatán. “We hugged each other. We cried. The countries of Venezuela and Colombia came over and also congratulated us. It was very nice to feel the sisterhood.”

Rhythmic gymnastics has been an Olympic sport since 1984 as an individual event; the group competition was added in 1996.

Mexico’s team, under the direction of head coach Blajaith Aguilar Rojas, will make its Olympic debut when the individual all-around competition begins on Aug. 8 at the new Porte de la Chapelle Stadium in the 18th arrondissement.

In total, 94 rhythmic gymnasts will be competing — 24 individuals and 14 teams (with five athletes per team).

Mexico’s team is composed of Tejeda, 22; Dalia Alcocer, 20, also from Mérida; Sofia Flores, 19, from the state of Coahuila (city not available); Kimberly Salazar, 20, from Xalapa, Veracruz; and 16-year-old Julia Gutierrez, also from Mérida.

The Mexican athletes say their routines will honor three of the Louvre Museum’s most famous works: the Mona Lisa, the Venus de Milo and Diana of Versailles, a statue that depicts the Roman goddess of hunting and wilderness.

Mexico's rhythmic gymnastics team en route to Paris.
Mexico’s rhythmic gymnastics team en route to Paris. (Facebook)

In rhythmic gymnastics, often described as “expression through movement,” athletes perform leaps, balancing maneuvers and flips on a huge floor mat while handling an apparatus. The musical accompaniment plays a significant role.

In Paris, there will be four exercises in the individual all-around competition: hoop, ball, clubs and ribbon. There will also be two exercises in the group all-around competition, involving five hoops, three ribbons and two balls.

In qualifying for the 2024 Games, the Mexican team beat out Brazil for the silver medal at the Pan American Games in November 2023, a competition in which Mexico won a record 52 gold medals.

Much of the team’s success has been attributed to Aguilar, a native of Jalisco who started in gymnastics at age 7. One of her early mentors at a State Council for Sports Promotion (CODE) training center in Jalisco was a coach from Bulgaria, Ivanka Tchakarova.

“Thanks to her, I have a passion for rhythmic gymnastics,” Aguilar recalled. “I remember sitting with her at CODE Jalisco. She was explaining to me why a jump attempt was worth it, and why it didn’t matter if the judge deducted points” if the move wasn’t perfect.

As an athlete, Aguilar was part of the team that won the bronze medal at the 2007 Pan American Games in Rio de Janeiro, Brazil. She has been the team’s head coach since 2016.

The opening ceremony of the 2024 Summer Games will occur on Friday, with springboard diver Alejandra Orozco and modern pentathlete Emiliano Hernández representing Mexico as flagbearers. Each country’s delegation will be sailing in boats on the Seine River.

Men’s soccer and rugby sevens started on Wednesday, July 24, and on Thursday, women’s soccer, handball and archery will get underway. Mexico’s athletes are expected to bring home at least a few medals at the 2024 games.

In Mexico, the Paris Olympics can be followed on television on Channels 5 and 9, TUDN and Claro Sports.

With reports from Reforma, Infobae and La Jornada Maya

Which type of tequila should I use in my cocktail?

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Three tequila cocktails
Do you know your types of tequila? Find out how to tell your añejo from your reposado, and what that means. (Shutterstock)

Choosing which tequila to use in a cocktail is an essential part of enjoying your drink to its fullest. But learning which ones you shouldn’t use is even more important. After all, you wouldn’t use your best malbec to prepare a Spanish sangría, right? Likewise, you’ll want to keep your best tequilas away from sodas and sparkling water.

Beyond the price of a bottle, it’s important to know which tequila will add the right flavor notes to your cocktail. Let’s say you’re preparing a margarita — should you use añejo, reposado or joven? The answer is not that simple.  

What you add to your cocktail — or don’t — depends a lot on the type of tequila you use. (Shutterstock)

To help you confidently decide which type of tequila is best for mixed drinks and which is best for sipping, we’ve created a glossary classifying the available types of tequila and an explanation of how best to use each one.

What is tequila?

Tequila is a distilled beverage made exclusively with the blue agave, Tequilana weber, which is native to Mexico’s western states. Although 90% of the world’s supply of tequila is produced in Jalisco, the blue agave also grows in Michoacán, Nayarit, Guanajuato, Colima and Aguascalientes, among other states. 

The appellation of origin system protects the Mexican tequila’s authenticity. Only spirits produced using the blue agave in 180 municipalities of Jalisco, Guanajuato, Michoacán, Nayarit and Tamaulipas, can be labeled as tequila. 

How many types of tequila are there?

Tequila is divided into two categories based on the sugars the spirit contains. The first one is simply tequila, which comprises 51% blue agave and 49% other sugars. The other type is tequila 100% agave, which, as the name suggests, is made entirely from blue agave.

The blue agave cactus is the most important ingredient in tequila. (Stephan Hinni/Unsplash)

Based on the amount of time the spirit spends maturing in barrels, tequila is divided into five types: blanco, joven, reposado, añejo and extra añejo. 

Let’s take a look at each one. 

Blanco

Also known as plata or silver,  blanco is the typical choice for preparing a margarita or paloma. It has a soft herbal aroma that includes notes of citrus, agave, fresh fruit and flowers. 

Tequila blanco is not aged and spends no time in contact with oak, which is why it stays crystalline and colorless. For this reason, many tequila enthusiasts consider it the purest expression of an agave spirit. A good bottle of blanco can be prized for sipping, so don’t relegate it to cocktails alone. 

Tequila blanco is often the cocktail tequila of choice, although some can be excellent for sipping. (Shutterstock)

Joven

Joven, which means “young,” is a somewhat rare style of tequila that blends tequila blanco and one or more aged tequilas. The time it spends aging varies, as it is a result of blends.

Taste wise, this type of tequila is a bridge between the herbal notes of tequila blanco and the delicate touches of oak and other additions of the tequila reposado. It is a good base for margaritas, palomas and martinis. 

Tequila joven can feature additives allowed by the Tequila Regulatory Council (CRT), the organization that oversees tequila’s appellation of origin and represents producers. Some of these include caramel color, wood or oak extract, glycerin and sugar-based syrup. It is also known as oro, or gold. 

Reposado

Reposado translates as “rested.” After distillation, it spends at least four months — and up to two years — in an American white oak barrel that infuses the spirit with its distinctive light straw color and golden reflections. It has ripe fruit aromas combined with wood and spices.

A refreshing board of tequila reposado, served in traditional caballitos. (Shutterstock)

We Mexicans don’t blend a tequila reposado into a cocktail. The best recommendation is to drink it derecho, meaning without blending and at room temperature. To make it more refreshing, you can add ice. 

Another popular and classic way to drink a reposado is sipping it in the form of a banderita,  which replicates the colors of the Mexican flag. The drink consists of three different shot glasses called caballitos filled with lime juice, tequila and a spicy tomato-based drink called sangrita.

Añejo

Añejo means “old,” a name that references the years this tequila spends in an oak barrel after distillation — at least one, and up to three. This resting period gives añejo its characteristic amber and coppery brightness. It has dried fruit aromas blended with intense notes of wood, chocolate, honey, vanilla, olive or spices.

Due to its profound flavors, tequila añejo is best enjoyed through slow sipping, at room temperature or with ice. It is typically served in brandy or whiskey glasses. However, it can be a good substitute to whiskey in some cocktails, like the añejo old fashioned

Tequila generally ages in oak barrels, giving it a distinctive dark color. (Shutterstock)

Extra Añejo

This is a relatively new style of tequila introduced to the market in 1995 by Jalisco’s Beckmann family, owners of tequila José Cuervo. Aged for at least 40 months, it has notes of honey with hints of cocoa, vanilla, nuts or candied orange.

While most distillers use a variety of wood barrels to age extra añejo tequila, the most popular ones are made of American and French oak.

Tequila extra añejo is a good substitute for bourbon or whiskey in cocktails. However, it is best enjoyed derecho: at room temperature or on the rocks in a cognac glass. 

Salud!

Gabriela Solis is a Mexican lawyer turned full-time writer. She was born and raised in Guadalajara and covers business, culture, lifestyle and travel for Mexico News Daily. You can follow her lifestyle blog Dunas y Palmeras.

Explosion at José Cuervo distillery kills 6 workers

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The La Rojeña distillery caught fire on Tuesday after a tank exploded.
The La Rojeña distillery caught fire on Tuesday after a tank exploded. (Facebook)

An explosion at a José Cuervo tequila distillery in Jalisco on Tuesday sparked a fire and killed six people, authorities said.

The Jalisco government said Tuesday that the deaths of five workers at the distillery in the municipality of Tequila had been confirmed, while state Civil Protection authorities reported Wednesday that a sixth body had been found.

Authorities said they do not know the cause of the two fires that broke out at the José Cuervo distillery.
Authorities said they do not know the cause of the two fires that broke out at the José Cuervo distillery. (Facebook)

“This morning while cooling operations and the removal of debris continued … a deceased person was found in a retention pit,” the Jalisco State Civil Protection and Firefighters Unit said on X.

It noted that the death toll from the incident had risen to six. Two other workers were injured, one seriously.

Casa Cuervo, which produces José Cuervo and other tequila and liquor brands, said in a statement that an accident that triggered a fire occurred at its La Rojeña factory at around 4:30 p.m. on Tuesday. The fire was controlled and extinguished “efficiently” and the distillery was evacuated, the company said.

Casa Cuervo said it was cooperating with authorities to investigate the causes of the accident.

Citing first reports, the Jalisco government said that “the incident involved the explosion” of a tank, which sparked a fire in three additional tanks, each of which can hold 219,000 liters of “raw material.”

The government added that the cause of the explosion was unknown. Security camera footage showed the moment the explosion occurred. What appears to be a large tank or still is seen blasting out of the building. Photos showed it lying crumpled on the ground.

The explosion occurred on the grounds of José Cuervo's La Rojeña factory in downtown Tequila, Jalisco.
The explosion occurred on the grounds of José Cuervo’s La Rojeña factory in downtown Tequila, Jalisco. (José Cuervo)

Located around 65 kilometers northwest of Guadalajara, the “magical town” of Tequila is recognized as the birthplace of tequila, Mexico’s most famous spirit.

The “Agave Landscape and Ancient Industrial Facilities of Tequila” are together a UNESCO World Heritage site.

A “José Cuervo Express” train runs from Guadalajara to Tequila, where tourists can visit the La Rojeña factory — the world’s oldest tequila distillery — and other distilleries.

A second fire breaks out on Wednesday 

The Jalisco government said that another fire occurred on Wednesday morning at the José Cuervo distillery in an area where cardboard and “other supplies” are stored.

The blaze – whose cause was also unclear – began as cooling operations and the removal of debris continued, the government said, adding that that the fire “reached a 200-liter barrel that contained residues of raw material.”

Firefighters and company personnel responded quickly and controlled the blaze without it posing “a major risk in the area,” the government said.

Mexico News Daily 

This jailhouse carving may provide an early look into the conquest of Mexico

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Prisoner of Llerena carving
Does this show La Malinche marching with Hernán Cortés? While we know little about the story behind the mural, experts believe the artist must have experienced what happened first hand.

Who was the so called “Prisoner of Llerena,” an unfortunate prisoner detained by the Spanish government for crimes against the church? Recently, I stumbled upon a Facebook thread discussing the meaning of candlelight drawings scratched on the wall of a Spanish Inquisition jail cell in the early 1500s.

The sponsor of this conversation, an organization called Ruta Conquistadores, had published photos of the “mural” which had been copied and made available for public viewing in the Museo Histórico de Llerena, a small town in Spain’s Extremadura region.

Library archivist of Llerena, Francisco Mateos, discusses the jail-cell mural in a YouTube video.

The drawings seem to show Spanish soldiers, native Mexicans and several huge snakes possibly adorned with feathers.

Quetzalcoatl in the calaboose

Who might have been drawing conquistadores and Quetzalcoatl on the wall of a Spanish calaboose at such an early date? 

Fortunately, I was able to contact Luisma Domínguez, director of Ruta Conquistadores, who kindly passed on to me explanations of the curious drawings, by local historian Manuel Toro and archivist Francisco Mateos:

“We see a great many Spanish soldiers, which may represent Hernán Cortés and his men. Among them walks a woman who may be La Malinche. There is a very large cross and below it a figure that I suppose is the author of the mural. There are birds and animals in the drawing and some huge serpents. Since we have only small snakes in Spain, I suppose all these things represent scenes in America, perhaps drawn by a soldier from this region, Extremadura, who ran afoul of the Inquisition.” 

Domínguez thinks the Prisoner of Llerena may have been one of the 500 Spaniards who accompanied Cortés to America, “but one who had a problem. He might have been a Jew, a false convert, and when he came back to Spain, they put him in this prison.”

The full carving appears to depict the Spanish conquest of Mexico.

Prisoner of the Spanish Inquisition

“We see the author of this mural at the foot of the cross as a penitent,” says Domínguez, “realizing that he had to pay for his sin. But he appears to have drawn his own image twice. This has been interpreted to mean that he portrays himself as a Christian but deep down he is really a Jew. At some point in the New World, they must have discovered that he was a false convert and such was a person the Inquisition was after.”

Finding a conquistador in this part of Spain is not surprising, says Domínguez. “Almost all of Cortés’ men were born around here, within a circle about 100 kilometers in diameter. Soldiering was one of the main ways of life in Extremadura and once the Moors were driven out, most men were out of work… but then, America was discovered!”

The mural was quietly unveiled to the public seven years ago and since then a few Spanish historians and archaeologists have weighed in on just what it is.

I could, however, find no comments by experts in the New World, so I asked Luisma Domínguez for high-resolution photos of the drawings, which he sent me within a day. These I then forwarded to Mexican archaeologist Francisco Sánchez who specializes in the Pre-Hispanic ideographic tradition: how the Indigenous people transmitted information via images.

Many of the soliders who originally conquered Mexico hailed from the remote state of Extremadura. (about-spain.net)

A man named Snake

Sánchez immediately drew my attention to the lower left part of the drawing where we see a person wearing a crown with what appears to be a serpent attached to his head. “This,” he said, “is what is called a Name Glyph in the codices. It’s this figure’s name. It could be Quetzalcoatl, but there are many individuals whose names are related to a snake. Immediately behind this figure, we see what looks like two people kissing, but in reality, this is a symmetric face, a face seen from the front, but you have to see it close up. The two silhouettes form the nose, and the eyes in the two profiles are the eyes seen from the front. This is something very pre-Hispanic. We don’t know who that prisoner was, or where he was from, but one thing I can tell you for sure is that this was a person who had knowledge of what we call the Mixteca-Puebla iconographic tradition, found in the center of Mexico.”

Pre-Hispanic imagery

Sánchez pointed out that photos of the original wall show it very deteriorated. “So, when they did the restoration, they decided what was original and what was added later, and this they discarded. This influences the interpretation — but the snakes are pre-Hispanic without a doubt. A Spaniard could not have drawn them.”

So who made these images? Who was the Prisoner of Llerena?

Sánchez explained to me that in those days a favorite method of getting someone in the New World out of the way — without killing them — was to send them off to Spain and put them into what were called “secret” or “perpetual” jails, maintained by the Inquisition. One example is Nuño de Guzmán who died in such a jail cell, awaiting a royal audience which was never granted.

The unknown fate of Tenamaxtle

“The Spaniards also carried many indigenous to Spain,” Sánchez told me. “Some were nobles and some rebels. The latter, of course, ended up in prisons. One of them was Francisco Tenamaxtle, a leader of the Mixtón War in 1541, who was deported to Spain and then disappeared from history, lost in time…”

Was Tenamaxtle the mysterious Prisoner of Llerena? Let the research begin!

John Pint has lived near Guadalajara, Jalisco, for more than 30 years and is the author of A Guide to West Mexico’s Guachimontones and Surrounding Area and co-author of Outdoors in Western Mexico. More of his writing can be found on his website.

Salma Hayek carries Olympic torch at official relay in Versailles

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The Mexican actress Salma Hayek Pinault holding the 2024 Olympic torch in the Palace of Versailles
The Mexican actress Salma Hayek Pinault carried the torch from the Yvelines suburb of Versailles to the Palace of Versailles on Tuesday. (Paris 2024)

Mexican actress Salma Hayek Pinault was a guest of honor in the official torch relay in Versailles on Tuesday ahead of the 2024 Paris Olympics.  

“Queen Salma Hayek has entered the Chateau de Versailles,” reads the caption of a series of photos published by the Paris Olympics Instagram account.

 

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A post shared by Paris2024 (@paris2024)

The images show Hayek, 56, wearing the official Torch Relay uniform, consisting of a white track suit with orange detailing  on the sleeves, and carrying the Olympic torch. In another video, Hayek appears next to French footballer and Paris Saint-Germain player Presnel Kimpembe, who also participated as a torchbearer.

The Mexican actress of Lebanese descent has deep ties to France. She has been married to French businessman Fracois-Henri Pinault, chairman and CEO of luxury group Kering and president of the investment holding group Artémis, since 2009. 

“I represent everybody,” Hayek told the press. “I represent women, I represent Latinos, I represent Arabs, I represent middle-aged women, I represent housewives, mothers. But I also represent everyone who was ever told or made felt that they wouldn’t do anything with their lives. And every hardworking person. And I felt they were all with me as I was carrying the flame.”  

The Oscar-nominated actress carried the torch from the Yvelines suburb of Versailles to the Palace of Versailles, joining the trainer of the France soccer national team Didier Deschamps and singer Patrick Bruel.

Salma Hayek at the Palace of Versailles ahead of the 2024 Olympics
“I represent women, I represent Latinos, I represent Arabs, I represent middle-aged women, I represent housewives, mothers,” reflected Hayek. (Paris 2024)

Hayek wasn’t the only celebrity participating in the relay. Other notable personalities included actress Halle Berry and F1 driver Charles Leclerc. The American rapper Snoop Dogg will carry the torch on Friday, July 26, the opening day of the Olympics. Other big names participating in the Olympics include Celine Dione and Lady Gaga, who will both perform at the opening ceremony.

The opening ceremony will be held on the Seine River, the first time in history that an Olympics opening ceremony will take place in a venue other than a stadium.

The event will follow 85 boats carrying athletes from each Olympic delegation in a four-mile parade on the water. An ensemble of 3,500 actors, dancers and musical performers will put on a nautical show that will begin from the Pont d’Austerlitz and culminate at the foot of the Eiffel Tower.

One hundred and nine athletes will represent Mexico at the 2024 Olympics, placing the country within the top 20 countries with the most participants.  

With reports from El País and Variety

Inflation spikes more than expected in the first half of July

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Fruits and vegetables at a market
Annual headline inflation rose to 5.61% in the first half of July, the highest in rate in over a year. (Cuartoscuro)

Mexico’s annual headline inflation rate continues to increase, rising well above 5% in the first half of July.

The national statistics agency INEGI reported Wednesday that the annual headline rate was 5.61% in the first 15 days of July, up from 4.98% across June.

Inflation has been on the rise since March, reaching 4.42% that month, 4.65% in April and 4.69% in May.

The headline rate in the first half of this month is the highest since the second half of May last year. It is above all forecasts in a Bloomberg survey of economists, whose median estimate was a 5.38% reading in the first half of July.

INEGI reported that consumer prices increased 0.71% in the first 15 days of the month compared to the second half of June.

The closely-watched annual core inflation rate, which excludes volatile food and energy prices, fell to 4.02% from 4.13% across June. The rate was on par with the median estimate of economists surveyed by Bloomberg.

The annual core rate has declined every month since February 2023.

Pricey produce pressures household budgets

INEGI data shows that fruit and vegetables were 25.69% more expensive in the first half of July than in the same period of last year. It was the highest annual inflation rate for those products since the first half of August 2017. The steepest annual price increases were for chayotes, tomatoes, green tomatoes and onions.

Overall inflation for fruit and vegetables across June was a slightly less painful 19.73%.

Annual inflation for the agricultural products category was 14.33% in the first half of the month, tempered by a 4.82% year-over-year increase in the cost of meat.

Chayotes and tomatoes
Chayotes and tomatoes saw some of the steepest price increases in the first half of July. (Cuartoscuro)

Andrés Abadía, chief Latin America economist at Pantheon Macroeconomics, said that adverse climatic conditions and “external factors” are the main drivers of inflation in Mexico this year.

Energy prices, including those for electricity and gasoline, increased 7.30% in annual terms in the first 15 days of July, while services were 5.17% more expensive.

Prices for processed food, beverages and tobacco increased 4.03% annually, while non-food goods were 1.94% more expensive.

Will the Bank of Mexico cut interest rates next month?

With headline inflation continuing to rise, it appears less likely that Mexico’s central bank will cut its benchmark interest rate after its board’s next monetary policy meeting on Aug. 8.

However, two economists quoted in a Bloomberg report believe that the Bank of Mexico (Banxico) — which targets 3% headline inflation — will make a cut to its 11% rate on the second Thursday in August.

“My feeling is central bankers will prioritize the improvement we see in core measures, which came in line with estimates, and cut,” said Jessica Roldán, chief economist at Casa de Bolsa Finamex and a former Banxico official.

Facade of the Bank of Mexico in Mexico City
The Bank of Mexico cut the key rate in March to 11% and will next meet to consider a rate cut in August. (Cuartsocuro)

However, she acknowledged that “it’s tricky to lower rates when this print should increase the bank’s inflation estimates.”

Kimberley Sperrfechter, an emerging markets economist at Capital Economics, wrote in a note that “our base case remains that Banxico will resume its easing cycle next month.”

The central bank cut its key rate from a record high 11.25% to 11% in March, making its first reduction to borrowing costs in over three years.

Despite predicting a cut next month, Sperrfechter recognized that the probability of that occurring is diminishing “somewhat” due to the data showing that headline inflation reached its highest level in 14 months in the first half of July.

Gabriela Siller, director of economic analysis at Mexico’s Banco Base, wrote on X on Wednesday morning that the Bank of Mexico “should wait longer to continue with interest rate cuts.”

Jonathan Heath, one of the central bank’s board members, said on X earlier this month that he agreed with the assessment of Jerome Powell, chair of the United States Federal Reserve, that “more benign inflation data” is needed before interest rates can be cut.

“He said it for the Federal Reserve, but it applies equally to the case of Mexico,” he wrote.

With reports from El Economista, El Financiero and Bloomberg

Musk says Tesla gigafactory in Mexico ‘paused’ because of potential Trump tariffs

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Elon Musk, CEO of Tesla
Musk said there wouldn't be reason to invest in the factory in Mexico if Trump imposes tariffs on cars exported from Mexico. (Shutterstock)

Tesla CEO Elon Musk said Tuesday that the electric vehicle manufacturer’s planned “gigafactory” project in Nuevo León is currently “paused” because of the possibility that Donald Trump will impose tariffs on vehicles made in Mexico if he wins the Nov. 5 presidential election in the United States.

During Tesla’s Q2 earnings call, Musk was asked for an “updated timeline for Giga Mexico,” which the company first announced in March 2023.

Former president Donald Trump at a campaign rally
Trump has threatened to impose a 100% tariff on Chinese-made cars exported to the U.S. from Mexico. (Shutterstock)

“We currently are paused on Giga Mexico. I think we need to see where things stand after the election. Trump has said he’ll put heavy tariffs on vehicles produced in Mexico,” he said.

“So it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So we kind of need to see the way things play out politically. But we are increasing capacity at our existing factories quite significantly,” said Musk, who endorsed Trump after the assassination attempt on the former U.S president earlier this month.

Trump has threatened to impose 100% tariffs on cars manufactured in Mexico by Chinese companies, but he hasn’t publicly announced any plan that would adversely affect vehicles made here by Tesla, a U.S. company based in Austin, Texas. United States Trade Representative Katherine Tai indicated in May that U.S. authorities could impose protective measures targeting vehicles and other products made in Mexico by Chinese companies.

As things stand, vehicles made in Mexico can be exported tariff-free to the United States provided they meet regional content rules.

Tesla gigafactory rendering for Nuevo Leon, Mexico
Rendering of the planned Tesla gigafactory in Nuevo León, which the state’s governor has said will lead to over US $15 billion in investment. (Tesla)

Musk said last October that Tesla was preparing to build a new factory in Nuevo León, but indicated that he was hesitant to “go full tilt” on the project due to prevailing global economic conditions and uncertainty. In May, Nuevo León Nuevo León Economy Minister Iván Rivas insisted that Tesla was still planning to build its highly-anticipated gigafactory in the municipality of Santa Catarina near Monterrey, despite the project being slow to start.

If the Mexico gigafactory doesn’t materialize, it will be a major blow for Nuevo León and the state government led by Governor Samuel García, who has been an outspoken champion of the project. His government agreed to provide a range of investments to facilitate the establishment of the plant.

According to the federal Economy Ministry, construction of the proposed gigafactory would involve an investment of more than US $10 billion. García said last September that Tesla and its suppliers would invest $15 billion in the state.

In February, Bloomberg reported that Musk had “invited Chinese suppliers to Mexico to replicate the local supply chain at Tesla’s Shanghai plant.”

The news agency said that “Chinese auto-parts makers are rapidly setting up plants” on the outskirts of Monterrey to supply the Tesla gigafactory.

BYD, a Chinese EV company and major competitor of Tesla, has also announced plans to build a plant in Mexico, but it hasn’t revealed a location or how much it intends to invest in it.

Mexico News Daily