MEXICO: Mexico moves closer to China as it woos the Asian superpower in search of billions of dollars of investment

Record ID: 1519542

  • Title: MEXICO: Mexico moves closer to China as it woos the Asian superpower in search of billions of dollars of investment
  • Date: 25th August 2011
  • Summary: AUDIENCE AT BUSINESS FORUM (SOUNDBITE) (Spanish) TRADE EXPERT, SIMON LEVY SAYING: "China is developing a relationship that is becoming increasingly important. It is looking to develop its relationship with Latin America and I think this is the second most important relationship for China in the world beside North America." MEXICO CITY, MEXICO (AUGUST 24, 2011) (REUTERS) MORE OF EMPLOYEE WITH LENOVO-MANUFACTURED LAPTOPS LENOVO-MANUFACTURED LAPTOP MONTERREY, NUEVO LEON, MEXICO (AUGUST 23, 2011) (REUTERS) EXTERIOR OF LENOVO PLANT ENTRANCE OF LENOVO PLANT MORE OF PLANT EXTERIOR
  • Embargoed: 10th September 2011 10:14
  • Keywords:
  • Location: Mexico, Mexico
  • Country: Mexico
  • Topics: Business,International Relations,Economy,Technology
  • Reuters ID: LVA982HRBPIQJIZYNOQJE6Z7T1DJ
  • Aspect Ratio: 4:3
  • Story Text: As Chinese wages soar and its manufacturing base spills over its borders, Mexico is pulling out all the stops to attract the world's largest foreign investor to its prized location next to the U.S. - the world's biggest consumer - using its stagnating wages as drawcards.
    Unlike other Latin American countries, two-thirds of Chinese investment in Mexico last year was in the manufacturing sector according to the Universidad Nacional Autonoma de Mexico.
    Computer maker Lenovo was one of the first Chinese firms to make the move in 2008, when it set up operations in the prosperous industrial city of Monterrey some 230 km (140 miles) south of the Texan border.
    Its central geographic location in the Americas, free trade agreements with over forty countries and a cheap and able workforce has seen the Latin American country's competitive advantage strengthen and business leaders talking up its economic prowess.
    "In Mexico, human resources are well-trained and capable near the North American market and South America. We produce and export products to North and South America. We have good access to suppliers, good human resources and a spectacular economy," said Director General of Lenovo in Mexico, Ivan Ballesteros.
    Although Chinese business is increasingly penetrating Mexico, the country saw a paltry $5 million invested last year in comparison to the $15 billion that Chinese investors poured into Brazil. Keen to make up the shortfall, economic analysts believe Mexico's rich natural resources will be a major attraction for energy-hungry China.
    "China is developing a relationship that is becoming increasingly important. It is looking to develop its relationship with Latin America and I think this is the second most important relationship for China in the world beside North America," said trade expert Simon Levy.
    Unlike other Latin American countries, two-thirds of Chinese investment in Mexico last year was in the manufacturing sector. With an increase of Taiwanese investment in Mexico, there's expectations that China, with its suppliers, will follow suit.
    Originally seen as an economic foe, Mexico was the last country to recognise the Asian superpower's acceptance into the World Trade Organisation and it has maintained higher duties on goods imported from the country. However, recent overtures to China are starting to pay off with 2009 a record year for investment in the country.
    Further binding the two countries economically, the contentious import duties are are due to be lifted this December despite protests from powerful Mexican lobby groups who say cut-price Chinese imports threatens thousands of jobs in manufacturing firms from shoemakers to toy makers.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2020. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register