Mexico And China: An Emerging Economic Relationship
In recent history, Mexico has strived to be manufacturing rivals with China competing to sell goods to the American market.
Although China’s explosive double-digit economic growth is slowing down, it still has left little room for Mexico.
On the heels of President Enrique Peña Nieto’s visit to China, there might be potential for the two countries to forge a different relationship.
Mexico’s four percent yearly growth has been met with international speculation that the country could be emerging economic power. But, as the Washington Post points out, China’s economy still towers Mexico.
For example, one of the Mexican economy’s biggest success stories, its booming auto industry, produced a record 2.5 million cars last year — Fords, Nissans, Volkswagens and other brands.
“China produced 20 million cars,” Dussel said. “And 30 percent of them were Chinese brands with domestic technology
Items such as washing machines, cars, computers and farm equipment can start as components in China that are assembled in Mexico and finished in the United States before reaching American consumers. If companies can take advantage of each country’s manufacturing strengths, the result will be quality products at the lowest-possible prices, analysts say.
Likewise, the United States and Mexico can find new fuel for economic growth and help each other reduce their gaping trade deficits with China by working together to sell more goods to the swelling Chinese middle class.