China, Mexico Strengthen Trade Ties Amid US Pressure

Chinese Foreign Minister Wang Yi told his Mexican counterpart, Juan Ramón de la Fuente, that China is ready to collaborate with Mexico in resisting unilateral actions and defending the principles of free trade. He also noted that China welcomes an increased presence of Mexican products in its market and will encourage Chinese companies to invest in Mexico.

The meeting highlighted the strong foundation of mutual respect between the two countries and their shared commitment to deepening cooperation in both the short and long term. De la Fuente emphasized that the current global context presents an opportunity to strengthen political dialogue, while Wang recognized Mexico’s growing international role under the leadership of its first female president, Claudia Sheinbaum.

The two leaders agreed to advance collaboration across a range of strategic areas, including multilateralism, education, science, technology, and tourism, under the framework of the Comprehensive Strategic Partnership.

US Pressure Against Asian Trade Partners

For months, US officials have voiced concerns over China’s expanding economic footprint in Mexico. Allegations suggest that Chinese goods are being rerouted through South American companies to bypass trade restrictions. However, Ebrard has strongly refuted these claims, emphasizing that while Mexico is China’s second-largest trading partner in Latin America, it accounts for only 0.4% of Chinese investment in North America.

Previous reports indicate that the United States is also pressuring Mexico to exit the Trans-Pacific Partnership (TPP), a trade pact it joined in 2018 to strengthen ties with Asia-Pacific economies by eliminating tariffs and expanding market access. However, the agreement has disproportionately benefited Asian nations, particularly those with strong economic links to China.

Industry leaders, particularly in the steel sector, support the US position, arguing that the TPP has yielded minimal benefits for Mexico’s steel and aluminum exports while favoring Asian producers. “Withdrawing from the agreement would not be a major challenge and would provide greater certainty to US producers that Chinese steel is not being funneled through Mexico,” stated Jorge Guajardo, International Trade Consultant, in an interview with Reforma.

According to Banxico, China accounted for just 1.7% of Mexico’s exports in 2023, totaling US$10.06 billion, while representing 19.1% of Mexico’s imports at US$114.19 billion, resulting in a trade deficit of US$104.13 billion. Mexican Minister of Finance Rogelio Ramírez de la O underscored the lack of trade reciprocity, stating, “China sells, but does not buy. This has fueled growing sentiment in both the United States and Mexico to protect our domestic industries.”