This is the result of a trend to relocate (“nearshoring”) supply chains in the face of the disruption of the Chinese market with the United States and the potential benefits of the Mexico, United States and Canada Treaty (T-MEC), which opens the door to largest market in the world.
“Mexico, with a strategic geographical position and the T-MEC, as well as trade agreements with Latin American countries, has become the investment objective for the Asian giant that is moving part of its manufacturing,” said Susana Muñoz, director of the Mexico-Hong Kong Chamber of Commerce.
When inaugurating the China HomeLife Expo, in Mexico City, the specialist highlighted that the relocation of companies from that country is already a reality for Grupo Hengli, State Power Investment Corp, which bought the Mexican renewable energy company Zuma Energía, Lizhong, Citic Dicastal and Alibaba, among others.
The main cities benefiting from nearshoring are Monterrey, Saltillo, Mexico City, Tijuana, Ciudad Juárez and Querétaro. Muñoz stressed that this seeks to join the trend of relocating companies and thereby solve supply chain problems that worsened with the pandemic.
On her occasion, Carolina Núñez, executive director of the Mexico-China Chamber of Commerce and Technology (China Cham), highlighted that there are already more than 100 businesses that are establishing themselves in Mexican territory as part of this rearrangement of international trade.
In addition, he announced that the trade balance is 110,000 million dollars annually, where China is exporting more than 100,000 million dollars to Mexico, which shows the strength of the Chinese market in the country.
Núñez explained that China and all countries want to take advantage of the T-MEC and this promotes the phenomenon of relocation.
At the event, Shi Xiaochu, representative of the Chinese Council for the Promotion of International Trade (CCPIT) in Mexico, also announced that a fair will be held in China in November to attract Mexican companies interested in entering that Asian country.
For her part, Susana Muñoz, also director of the companies GBA Latam Trade and Investment Advisors, specializing in advisory services to early-stage SMEs in the southern regions of China, Southeast Asia and Latin America, said that this It is a year of recovery for the Chinese economy after three years of sanitary measures due to covid-19.
Meanwhile, Binu Pillai, director of operations of Meorient International Exhibition Co Ltd, organizer of the China HomeLife Expo, highlighted at the opening that this year there is a record number of more than 500 booths from Chinese companies, which demonstrates the interest of the giant Asian in this Latin country.
In the first quarter of the year, foreign direct investment (FDI) from China was 2.2 million dollars, while at the end of 2022 it amounted to 296.5 million dollars.
