Alfonso Durazo Montaño, Governor of Sonora. Photo by @Chekeguevara90, under CC BY-SA 4.0, via Wikimedia Commons
Carlos Loret de Mola. Photo by @LoretCarlos via Facebook
Texas Border Business
According to Carlos Loret de Mola, a journalist based in Mexico, through a video he posted on their social media, the special investigation by Latinus, a spotlight has been cast on a troubling intersection of political power, family connections, and international commerce in Sonora, Mexico. This report digs into how a Chinese company, Mainland Headwear, has allegedly gained extraordinary benefits thanks to a tight-knit relationship with the family of Sonora’s governor, Alfonso Durazo. The findings are a tale of political impropriety and a reflection of what former U.S. President Donald Trump has criticized as Mexico becoming a “backdoor” for Chinese products into the United States.
As Loret de Mola narrated, “Imagine being the child of a governor. You study abroad, where you meet the son of a Chinese business tycoon. Years later, your father is the governor of Sonora, Mexico, and his influence enables your friend’s multinational company to secure remarkable advantages, including a tax-free 150-hectare plot of land near the U.S. border.”
According to Latinus, this is the story of Alfonso Durazo Chávez, the son of Sonora’s governor. Chávez facilitated Mainland Headwear’s investment in Agua Prieta, a city strategically located just two kilometers from the U.S. border. This partnership was made possible by maneuvers involving Durazo Chávez, his associates, and state officials.
As reported by Latinus, Mainland Headwear, a Hong Kong Stock Exchange-listed company, came to Sonora through the personal relationship between Durazo Chávez and Alexander Ngan, the company’s executive director and the son of its founder. Governor Durazo himself acknowledged this connection, stating that their schoolboy friendship was pivotal in realizing the project.
The Chinese company has established two subsidiaries in Mexico: Mainland México Investment and Mainland México Manufacturing. Surprisingly, Fernando Rojo de la Vega Molina, who also serves as Sonora’s Secretary of Welfare, is the sole administrator for these entities. It appears that Rojo de la Vega is not just a public official; he is also a business partner of Durazo Chávez in several ventures initiated shortly after Andrés Manuel López Obrador’s electoral victory in 2018.
The Land Deal: 150 Hectares, Tax-Free
The linchpin of this deal lies in the generous handover of 150 hectares of prime land, valued at an estimated 360 million pesos, to Mainland Headwear. Local authorities granted this land under a trust managed by Durazo Chávez. Local media reported that the company was given an almost free pass: a two-year tax exemption. In exchange, Mainland Headwear committed to minimal investment conditions and a modest contribution of 200 million pesos to build their factory.
Even more concerning is establishing a strategic fiscal zone on the donated land. This designation allows Mainland Headwear to import, produce, and export goods without tax burdens. While the zone was purportedly intended to attract $200 million in investment, critics argue it primarily benefits the Chinese company. Mainland Headwear has already touted the tax and logistical savings it has achieved by operating in Sonora.
Trump’s Warning Realized
Donald Trump has long argued that Mexico is a gateway for Chinese goods to evade U.S. sanctions. The Latinus investigation lends weight to this claim, revealing how Mainland Headwear’s products flow freely into the United States, bypassing significant tariffs. This is the precise economic manipulation Trump decried, now facilitated by a Morena-led state government in Mexico.
A Conflict of Interest?
The Latinus report raises pressing questions about the ethics and legality of this arrangement. Is it appropriate for a governor’s son to mediate such deals? Can a Secretary of Welfare, tasked with public service, also serve as an administrator for private entities benefiting from state generosity?
Carlos Loret de Mola, the journalist behind this investigation, notes:
“One thing is for a governor to attract investments and create jobs. Another entirely is to give privileged treatment to a company where the administrator is his Welfare Secretary and his son’s business partner.”
While the Agua Prieta deal is localized, its repercussions stretch across borders. It exemplifies how political connections and economic incentives can transform Mexico into an enabler of global trade imbalances, undermining both U.S. trade policy and Mexico’s integrity.
As investigations continue, the Durazo-Chávez-Mainland saga accentuates the urgent need for transparency and accountability in Mexico’s governance. What began as an effort to attract foreign investment has snowballed into a scandal that has raised alarms in Mexico and the United States. This is not merely a case of influence peddling but a geopolitical dilemma with ramifications far beyond Sonora’s borders.
Sources: Latinus Special Report, January 2025
See the video report by Latinus here.
