Saw this last night. Did not realise it was such a thing.
Chinese firms are racing to set up factories in Mexico to bypass US tariffs and sanctions.
www.bbc.com
It's why "rules of origin" are so important in customs and tariffs.
If the company is owned by foreigners but the rules of origins are strict, then it's no different to someone within the zone setting up a factory, they could be mexican, could be Chinese, doesn't really matter.
If you implement shit rules of origin, then companies outside the zone can basically import the components with artificially low bill of material costs (to lower tariffs on the inputs), then just have a basic assembly plant it within the tariff zone, avoiding tariffs on the end product.
As a result, there's usually pretty strict rules of origin around this stuff.
The UK car industry was in serious trouble as a result of it until the agreement in december, to avoid tariffs on UK electric car exports to the EU.
Basically there are fuck all electric car batteries being produced in the EU or UK, they're mostly made in the US or China.
Because they make up so much of the value of a car, it'd push the percentage of a car built in the UK or EU below the required limit for tariff free export to the EU, making manufacturing in the UK uneconomic.
They've extended the imposition of those tariffs out to 2027:
Tariffs are fucking messy and economically horribly inefficient.