Mexico has seen a significant increase in foreign direct investment (FDI), particularly through greenfield foreign investment—the establishment of new facilities and operations by foreign companies rather than the acquisition of existing companies. In 2024, foreign firms invested approximately $45 billion in greenfield projects in Mexico. China’s share of inbound greenfield investment has also grown substantially, from less than 1% between 2005 and 2009 to more than 6% between 2020 and 2024, reaching 9% in 2023. Much of this investment is concentrated in strategic sectors, particularly automotive and electric vehicles, energy, and mining.
Against this backdrop, the report examines the opportunities and potential national security risks associated with these investment trends and identifies gaps in Mexico’s current regulatory framework. It proposes eight policy recommendations for developing a comprehensive Investment Screening Mechanism (ISM), with a focus on critical and strategic sectors, including telecommunications, defense, food security, critical minerals, semiconductors, and the electric vehicle and battery supply chain. The proposed framework seeks to strengthen Mexico’s economic security while maintaining its attractiveness as a destination for foreign investment, supporting a more secure and resilient North American economy that advances shared U.S. and Mexican interests.
The following recommendations provide a roadmap for policymakers:
- Make Investment Screening Mechanism (ISM) part of a comprehensive economic security strategy.
- Cooperate with regional partners.
- Develop a screening law for the screening of national security risks in Foreign Direct Investment.
- Expand the list of covered sectors.
- Lower the ownership threshold for review.
- Include greenfield investments within the ISM scope.
- Establish a specialized ISM reviewing committee.
- Build domestic awareness and stakeholder support.
Published Date: September 09, 2026