Mexican authorities announced Wednesday thatChinese automaker JAC would soon begin producing cars in the central Mexican state ofHidalgo.

Hidalgo Governor Omar Fayad announced the 4.4-billion-peso (212-million-U.S.-dollar)deal between Mexico’s Giant Motors Latinoamerica and Chinese state-owned automakerJAC Motors at a press conference in the capital.

Under the deal, Mexico will begin assembling Chinese cars in March at a plant in CiudadSahagun, about 60 km northeast of Mexico City and the first cars are expected to roll offassembly lines in the second half of this year.

Mexico’s Minister of Economy Ildefonso Guajardo said that the deal came at a time whenthe country is trying to diversify its sources of foreign investment amid uncertainty over itsfuture ties with the United States.