The Mexican government has unveiled a plan to reduce its trade deficit with China. The plan comes at a time when Mexico is trying to counter US claims that “Mexico allows Chinese goods” to transit through the country to the United States.
Transmits to UNN with reference to FT.
Mexican President Claudia Sheinbaum unveiled a plan to increase domestic production and reduce imports. The government presented a plan to reduce the trade deficit with China and attract investment.
Sheinbaum dubbed this decision the “Mexico Plan.” It is an attempt to increase national production in sectors ranging from textiles to automobiles and reduce the trade deficit with China, which grew to $105 billion in 2023.
Mexican America sounds good: Mexico's president responds to Trump08.01.25, 22:02 • [views_25419]
“It's been proven to be one of the best trade deals in history, and it's benefited three countries. It's the only way we can compete with Asian countries, particularly China,” Sheinbaum told business leaders at an event at the National Anthropological Museum.
Earlier, Trump's representatives expressed concern about China's growing role in Mexico's economy.
Until recently, there was little public debate in Mexico about China's role in its economy as investment and trade grew faster after the Covid-19 pandemic. The trade deficit with Beijing has also grown to 38% of GDP.
To counter this, Sheinbaum will need to attract investment by overcoming the uncertainty created by both Trump and her government's domestic agenda, the Financial Times writes .
For reference
Relations between the United States and China remain tense as political pressure for confrontation grows. In contrast to the military and ideological conflict that characterized the Cold War of the 20th century, today's rivalry between the United States and China is centered on issues related to technology and trade in key global sectors.
Over the past decade, the relationship has turned from cooperative to competitive, making China an adversary rather than a partner. As the United States and China advance their respective concepts of governance, multilateral cooperation offers a way to reduce tensions.