The robust commercial relationship between Mexico and China increased by more than 22% from 2019 to 2021. As a result of this growing Mexican trade with China, the positive balance in the flow of goods and services between the two commercial partners reached approximately 110 billion dollars. This change was due principally to the measurably greater interest of the Asian giant in the Mexican market. This is according to the Chamber of Commerce of China in Mexico.
Mexican trade with China will be showcased at the Mexico City trade event
Within the framework of the 50th anniversary of the reestablishment of diplomatic relations between both nations, Amapola Grijalva and Graciela Narcia, president and general director, respectively, of the aforementioned commercial chamber, will make a presentation at the China Home Life Expo Fair. This event will be held starting on Tuesday, June 14, and ending on June 16, 2022, at the World Trade Center (WTC) in Mexico City.
Narcia explained that the commercial flow in bilateral trade between countries reached 110.3 billion dollars in 2021. This represents a figure in Mexican trade with China that is 22% over and above that recorded in 2019, the year before the onset of the global covid-19 pandemic. During that year, total trade between the two nations was valued at approximately ninety billion dollars.
She went on to add that, thus far this year, Mexican trade with China has been valued at thirty-two billion dollars during the period January-March 2022. Given this figure, it is anticipated that there will be greater total trade between the two countries than that which was recorded in 2021.
Likewise, she went on to state that the ratio is 10 to 1, “that is, for every 10 dollars of commercial exchange between the trading partners, 9 dollars are Chinese exports to Mexico.” In order to balance the relationship in Mexican trade with China, the former country is seeking opportunities to sell its products to the latter.
Meanwhile, Grijalva stressed that the global trade situation and the relocation of manufacturing activities in North America from China are a unique opportunity for Mexico to expand trade with the Asian giant and also attract Chinese investment to its shores.
“This opens spaces for the Mexican government to establish a strategic alliance with the Chinese, especially because of the complementarity. More Mexican trade with China and the purchase of Chinese products can take place in various sectors, including electronics and the automotive sector. Additionally, Mexico will have increased possibilities to export the country’s goods to Asia,” Grijalva said.
The China Home Life Expo will showcase many of the country’s SMEs
In this regard, Narcia pointed out that the China Home Life Expo will be the showcase for approximately three hundred Chinese small and medium-sized companies ( SMEs ) that will meet at the WTC.
Marcos Gottfried, president of the fair and of the Tradex company, has pointed out that these three hundred companies come from different regions of the Asian country, and some are considering establishing a representative office in Mexican national territory.
He said that what the Chinese export the most to Mexico are capital and intermediate goods for the maquiladora manufacturing industry as well as high-tech products for the solar sector. An example of a prolific exporter to the Mexican solar sector is the manufacturer Ginlong Solis, which is located in the Chinese city of Ningbo and has offices in Monterrey, Mexico.
He explained that fabrics, appliances, clothing, electronics, even toys, and other manufactured products would be exhibited at the fair.
Narcia indicated that the Chinese Chamber of Commerce would support Mexican businessmen and explained that the organization had created a Business Verification Center.
Additionally, Mexican and Chinese trade officials are finishing establishing a Center for Mediation and Dispute Resolution, which will help with requests to mediate any commercial conflicts that arise as Mexican trade with China continues to grow.
Likewise, she said that there is an interest on the part of Mexicans to export to China, but businesses now require advice in the face of the new complexities in the commercial relationship and the absence of a trade agreement.
For example, she indicated that rules 248 and 249 came into force in China in January of this year. These measures are responsible for imposing new requirements on agricultural imports.
She also recalled that China has submitted an application to join the Comprehensive and Progressive Trans-Pacific Partnership Agreement (TPP-11), of which Mexico is also a member. This international trade accord also contains requirements that must be analyzed in the context of growing Mexican trade with China.
Finally, she voiced some regret that Mexico has limited participation in Chinese trade fairs. This is despite the fact that there are more than 1,500 a year. In a typical year, Mexico attends less than 50 of these events with only a few of the country’s companies.