Can China, the United States, and Mexico complement each other economically?

According to data from the Global Trade Center, in 2022, despite the impact of the epidemic, China’s year-on-year growth will still reach 6.89%, accounting for 14.7% of the world’s total exports that year.

Looking at the global market, China has always been the largest trade exporter.

Although Mexico is also on a growth trend, with a year-on-year growth rate of 16.92%, the gap with China is large, accounting for only 2.4%. The global ranking is not even among the top ten, ranking 12th.

Compared with China, Mexico’s foreign trade structure is extremely simple. It is no exaggeration to say that Mexico’s exports are limited to North America, that is, the “supermarket” specially supplied to the United States.

Judging from the data, Mexico’s export market has actually been extremely stable in the past ten years. The United States accounts for almost 78%, plus Canada, which accounts for 2%, and North America accounts for nearly 80% of exports.

Mainland China, which ranks third in its export share, accounts for less than 2%, only 1.8%. This shows the geographical location and singleness of its export structure.

Mexico is highly dependent on China’s exports. Whether it is import or export, trade exchanges between China and Mexico have become more frequent. Compared with ten years ago, in 2022, Mexico’s total imports of goods from China increased by 1.94 times, and exports also increased by 1.67 times.

Mexico prefers to import goods from China than to export, so the trade deficit is increasing year by year. In 2022, the trade deficit hit a new high, reaching $107 million.

Can China, the United States, and Mexico complement each other economically?

From the perspective of the structure of imported goods, electronic products, industrial equipment, vehicles and spare parts are the main goods imported by Mexico from China. In the past two years, the import volume of these commodities has maintained a high growth rate. Among them, vehicles and spare parts are the most typical, with a year-on-year increase of 72% in 2021 and 50% in 2022.

By calculating China’s share of corresponding goods in Mexico, we will also find that “Made in Mexico” is inseparable from “Made in China”.

In order to help local small, medium and micro enterprises reduce the impact of imported goods, the President of Mexico signed the “Administrative Order on Amending the General Import and Export Tariff Law” on August 15, raising tariffs on 483 products, including steel, aluminum, and chemical products. The tariff rate will be adjusted to between 5% and 25% according to different industries.

This move has had the greatest impact on trade relations and the flow of goods in countries and regions such as China, South Korea and India, especially China, which has become Mexico’s largest source of imports.

But at the same time, it will further promote the trend of Chinese companies transferring production lines to Mexico for processing and manufacturing.

If you have goods that need to be imported from China to Mexico, you can contact us. We have sea transportation, air transportation, and express delivery to provide you with suitable logistics solutions.

After all, compared with the high tariffs imposed by the United States on Chinese goods, goods manufactured by Chinese companies in Mexico have a more competitive advantage.

Chinese companies continue to increase investment in Mexico, which not only helps Chinese companies expand overseas markets, but also successfully circumvents various U.S. restrictions on Chinese products and tariffs and other costs, using Mexico as a manufacturing springboard to continue to sell more products to The United States, after all, is the world’s largest consumer market and American consumers are the largest buyers.

A report from the National Autonomous University of Mexico shows that my country’s investment in Mexico increased by 48% in 2022 compared with the previous year.

“Since 2022, it has been almost hard to find a place in our park, including the city where I am located. Chinese companies are rushing in to purchase land and build factories.” Hu Hai, chairman of Huafushan Industrial Park, said in an interview with the media. A survey by Spain’s BBVA found that one-fifth of newcomers to private industrial parks in Monterrey, Mexico’s industrial hub, were Chinese companies.

It can be seen that China, Mexico, and the United States still form a complete industrial chain.

International logistics and transportation are the most prone to problems. If you have goods to ship, you must make a shipment plan in advance.