Beijing Automotive Industry (BAIC) will spend $1 billion on a new car factory in Mexico which will open in 2020. While the North American automotive market has plenty of potential, tighter rules-of-origin for tariff-free sales within NAFTA may make it difficult for BAIC to sell profitably across the region. Yet, Chinese manufacturers have already had a degree of success. Exports from China, which BAIC started mid-2016 but includes other manufacturers, reached $578 million in 2017 and an annualized rate of $1.45 billion in the last two months of the year.