Advertisement
Letters | As Trump targets China in trade war, Chinese companies could find an ally in Mexico
- The trade war is costing billions and Mexico, as a US neighbour, is a great alternative for Chinese firms
Reading Time:2 minutes
Why you can trust SCMP
From Canada to India, US President Donald Trump has been pushing other nations around in trade relations. China has experienced his trade war first-hand and, after the US in May increased duties on US$200 billion of Chinese items to as much as 25 per cent, maybe it is high time for Chinese businesses to find an alternative. Mexico could be an option.
Under his “America First” doctrine, Trump wants to make US products cheaper than imports, but, in trying to do so, he is damaging long-standing relationships and global trade practices.
His recent confrontation was with Mexico, a traditional ally of the United States. Trump had said he would impose tariffs of 5 per cent on all Mexican goods, unless Mexico stopped illegal immigration across its border with the US. Even though the tariffs were “indefinitely suspended”, it was reported that key provisions in the deal, forged under the threat of trade tariffs, were agreed to months ago. Mexico, which faces a complex economical situation, had no other option but to agree, proving to Trump that his method works.
Advertisement
In times when China and Mexico need to counter the outbursts of the US president, why don’t they do it together?
Mexico has one of the most open economies in the world. It has free-trade agreements with more than 50 countries, including Japan, Singapore and Vietnam. Besides, its proximity to and level of integration with the US, one of the largest markets in the world, make Mexico a great alternative for Chinese companies.
Advertisement
Advertisement
Select Voice
Select Speed
1.00x