Courtesy of: Mexico Today
Has China’s economic rise come at the expense of Mexico? To many casual observers and experts alike, the answer is yes. The International Economy, a trade journal, once concluded, “China is eating Mexico’s lunch.” “China competes with Mexico and buys from Brazil,” noted The New York Times on June 17.
China’s entry into the World Trade Organization in 2001 marked the onset of a decade-long slowdown in Mexico, where economic growth averaged 1.8 percent annually. Foreign investment flocked to China, setting up factories where hourly wages were among the lowest in the world. Other factors supported China’s export-led growth model, including low fuel prices that allowed for profitable trans-Pacific shipment of manufactures. Seven years after NAFTA granted Mexico privileged access to the US market, Mexico’s position appeared undercut by China’s incorporation into the global economy.
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