Chinese-manufactured electric vehicles (EVs) and inexpensive e-commerce products are increasingly penetrating Latin American markets, notably in countries such as Brazil and Mexico, raising concerns among local officials and industry stakeholders over competitive pressures.
Latin America holds a vital strategic position for China, which is actively strengthening its economic relationships with rapidly developing markets including Brazil and Chile. Amid slowing demand in its domestic economy, Chinese automakers and producers are redirecting efforts to expand their customer base internationally.
Countries like Mexico, Brazil, and Chile have implemented measures intended to limit certain low-cost Chinese imports. These initiatives aim to safeguard domestic industries vulnerable to competition fueled by Chinese products benefiting from substantial governmental subsidies, robust state support, and lower manufacturing costs.
Chinese automotive brands, in particular, have made significant inroads into the Latin American EV market. In Brazil, Chinese brands such as BYD and Great Wall Motor (GWM) accounted for more than 80% of the over 61,000 electric vehicles sold in 2024. In Mexico, Chinese-made vehicles represented roughly 15% of total domestic automobile sales in the previous year, a figure substantially higher than in the United States, where tariffs have largely restricted Chinese car imports.
Notably, BYD, which surpassed Tesla as the global leader in EV production, recently offloaded a shipment exceeding 5,800 electric and hybrid vehicles in Argentina. This surge aims to capitalize on an Argentine policy permitting tariff exemptions for imports of up to 50,000 EVs and hybrids annually, reflecting a strategic move by the Chinese automaker to expand its presence in the Latin American market.
Beyond automobiles, affordable goods distributed through Chinese e-commerce platforms such as Temu and Shein are increasingly prevalent in Latin American consumer markets, further intensifying local industry concerns.
José Manuel Salazar-Xirinachs, the executive secretary of the Economic Commission for Latin America and the Caribbean headquartered in Chile, emphasized China’s rapid progress in technological advancements and product innovation, particularly referencing the EV sector. He remarked that China should no longer be perceived primarily as an exporter of basic goods, highlighting the evolving nature of its export economy.