The restrictions imposed by the United States against China are yielding results, with Mexico being the main beneficiary. Since President Joe Biden’s tougher rhetoric and imposition of tariffs and export restrictions on critical Chinese technologies to the United States, Beijing’s exports have decreased. During the same period, Mexico has been gaining ground, according to data from the U.S. Census Bureau published on Tuesday.
In the first 11 cumulative months of 2023, Mexico surpassed the Asian giant in the value of exports to the United States, reaching a total of $438.986 billion, while China lagged behind with $393.137 billion. Everything points to 2023 being the year when Mexico will be crowned as the main exporter to the United States, relegating China. Among the products that the United States most widely purchases from Mexico are automobiles and automobile parts, electronic products, oil, and agricultural products.
According to the latest figures, Mexico exported a total of $39.81 billion to the United States in November, while China exported $35.494 billion. Canada, the other member of the USMCA agreement among the three American nations that replaced NAFTA in 2020, came in third, exporting $36.141 billion in November, totaling accumulated exports in 2023 of $387.727 billion.
The trade tensions between the United States and China are also creating excitement and anticipation in Mexico due to the potential for nearby relocation: the interest of companies in leaving China to secure their supply chains in countries that are “allies” of the United States.
Lawmakers in Washington have warned that Chinese companies are seeking to move their operations to Mexico in order to continue selling in the US market.
Despite foreign direct investments (FDI) in Mexico reaching historic levels, the country does not have the same advantage in exports. According to data from the Organization for Economic Cooperation and Development, the United States was the world’s leading recipient of FDI in the first six months of 2023, followed by Brazil, while Canada and Mexico tied for third place. The United States was also the largest global investor, followed by China and Japan.
