Mexico Is Facing a Second — and Worse — ‘China Shock’
A flood of Chinese imports threatens its efforts to diversify and grow its economy. The solution: greater integration with its North American neighbors.
More of these are coming.
Photographer: Alfredo Estrella/AFP/Getty Images
Mexico’s economic future is suspended between two superpowers. Its trade-heavy economy sends nearly 80 cents of every dollar in exports to the US, leaving it vulnerable to President Donald Trump’s threats. Meanwhile, rising imports from China threaten its bid to grow its economy through advanced manufacturing.
The US and Mexico are each other's largest trading partners, exchanging more than $800 billion worth of goods and services back and forth each year. Intermediary goods lead these exchanges, with circuit boards, engines and other parts coming together in the form of vehicles, electronics and planes. Atop these North American manufacturing supply chains are cross-border sales of fuel, grains, produce, machinery and medical devices.