(Bloomberg) -- Close advisers to the leading candidates in Mexico’s presidential race agreed that the country should diversify its global trade links and ensure that it capitalizes on efforts by companies looking to relocate supply chains to North America — including from China.

China’s investment in the region could be one of the top issues of discussion when Mexico sits down with Canada and the US to review the terms of their joint trade agreement in 2026, said Ildefonso Guajardo, who is advising opposition candidate Xochitl Galvez.

Diana Alarcon, an adviser to the ruling party candidate Claudia Sheinbaum, agreed that Mexico should balance its relationships between different countries. 

“On the one hand, we must recognize that the greatest part of our trade and our interests are in North America,” Alarcon said at the Bloomberg Insights Summit in Mexico City on Wednesday. “On the other, there’s a need and an importance in diversifying trade based on the interests of Mexico and Mexicans.” 

Mexico’s election in June and the US election in November have drawn attention to the role Latin America’s second-biggest economy is increasingly playing in global trade, both for firms looking to diversify out of China and Chinese companies seeking to skirt trade barriers. 

Campaign Trail

Investments from Chinese companies have drawn scrutiny on the US campaign trail, with former President Donald Trump threatening to place 100% tariffs on cars made in Mexico by Chinese firms. 

Mexico received $36.1 billion of foreign direct investment in 2023, a 27% increase from the year before, led by the US, Spain, Canada, and Japan, according to a statement from the Economy Ministry. 

Guajardo called for improvements to domestic policy, including in security and energy, in order to draw more companies to Mexico to supply North American consumers.

“We have to be careful when this investment comes with sensitive technology and can be a vulnerability in terms of security,” Guajardo, a former economy minister under President Enrique Peña Nieto, said.

Alarcon said more fiscal incentives aren’t needed to lure companies to Mexico, but added that it will be important to invest in highways, clean energy, and other infrastructure to make sure that the conditions exist for decades-long investments. 

Read More: Sheinbaum Lead Widens to 29 Points in Mexico Presidential Race

The Bloomberg Polling Tracker shows Sheinbaum has about 60% of voters’ support, in part because of the popularity of outgoing President Andres Manuel Lopez Obrador, followed by Galvez with 32% of potential votes.

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