Is China using Mexico as a back door to trade with the US?
The governor of the Mexican northern state of Durango Esteban Villegas announced last Monday the first “grand investment of the year.” The investment is of close to $400 million — and the investor is China. This project is one of many. So it appears shortsighted to celebrate Mexico surpassing China to become the US’s top trading partner as an absolute “decoupling” success. While Mexico and the US are economically integrating, so are Mexico and China. Politicians in Washington, most notably members of the Select Committee on the Chinese Communist Party, are now warning that Beijing is attempting to use Mexico as a “back door” to the American market as direct trade between the great competitors sharply declines.