**The renowned American economist and consultant, Jock O’Connell, has categorically stated that “the Chinese are just the latest to capitalize on Mexico’s proximity to the world’s wealthiest consumer market,” referring to the United States, while this dynamic has boosted activity in the main Mexican Pacific ports due to the increasing operation of cargo from the Asian giant.**
His comment was published in the April 2024 edition of the West Coast Trade Report, produced by the Pacific Merchant Shipping Association (PMSA), an independent shipping association whose members—owners and operators of maritime terminals and vessels from the U.S. and abroad—are primarily engaged in trade between Asia and the U.S. West Coast.
The analysis by this expert in foreign trade logistics seeks to determine whether the surge in Chinese imports to Mexico might impact the operations of U.S. ports.
“There is no doubt that Chinese manufacturers have been setting up in countries less likely to attract the attention of U.S. customs, inspectors, or free trade critics in Congress. There is also no doubt that Chinese investment in Mexican industrial parks has been flourishing, just as Japanese investments did a generation earlier,” O’Connell remarked.
Far from being unrealistic, data from Mexico’s Ministry of Economy (SE) shows that in 2023, Chinese investors deposited the highest amount recorded so far in the real estate and rental services sector, with $41.7 million. However, most of the Chinese FDI in Mexico that year was concentrated in manufacturing industries, totaling $125 million, mainly in the production of transportation equipment and automotive parts.
Yet, when examining SE’s detailed data, it is clear that Chinese FDI still represents a small percentage of Mexico’s total annual foreign investment. In 2023, it accounted for just 0.4%. For now.
What is certain is the constant increase in imports from that Asian country, mainly by sea. Citing data from the National Institute of Statistics and Geography (Inegi), O’Connell highlighted that the proportion of Mexico’s imports arriving by sea has grown…
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