In recent years Mexico\u2019s economy has witnessed an increasing number of Chinese companies interested in trade and investment in Mexico.\u00a0\u00a0 China and Mexico share important priorities that have forged the basis for cooperative relations between the two nations.\u00a0 For Chinese investors, Mexico has become a desirable investment destination because of its wealth of natural resources, modern infrastructure, internationally qualified workforce, and predictable legal environment. The fact that Mexico has been blessed with natural resources so critical to the future development of China puts Mexico in a unique position to attract China as a trading partner.<\/p>\n
Mexico is China’s second largest trading partner in Latin America. Between 2000 and 2009, trade between the two regions increased nearly eleven-fold, from $ 3.1 million to 34.7 million.\u00a0 From January to March 2010, the exchanges amounted to $ 9.6 million, an increase of 31.2% over the same period last year.\u00a0 The main items of Chinese export to Mexico include electromechanical equipment, household appliances, textiles, as well as chemical and high-tech products.\u00a0 On the other hand, China imports synthetic fibers, steel products, raw cotton, plastics, and electromechanical equipment from Mexico.<\/p>\n
Conducting business in Mexico poses several advantages for Chinese companies. One of the key advantages of doing business in Mexico is its strategic location.\u00a0\u00a0 Mexico could serve as a door for China’s investment in Latin America and a region to produce goods for export.\u00a0 Chinese companies manufacturing in Mexico can have access to many countries\u2019 markets without being required to pay any tariffs, since Mexico has a free trade agreement with up to 44 countries.<\/p>\n
Mexico\u2019s legal environment has also improved through its membership in international organizations and compacts such as the NAFTA, the Organization for Economic Cooperation and Development, the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation.\u00a0 Mexican membership in international organizations means that Mexico is committed to the development of a competitive field in trade and investment with internationally accepted rules.\u00a0 Mexican import controls have also been significantly liberalized in recent years.\u00a0 Most products no longer require prior import permits, and import duties have been reduced. Mexico offers an accessible, skilled and cost-effective workforce.\u00a0 The Mexican work force is young and can be amenable to new management techniques to which an older work force may be unable to adjust. In general, companies have found that with proper training programs, high quality work can be obtained from the Mexican workforce.<\/p>\n
Still, China and Mexico have yet to take full advantage of the opportunities presented by this relationship.\u00a0 Looking forward, it is necessary for Chinese companies investing in Mexico to develop a clear understanding of the local market.\u00a0 It is also important for companies to analyze fiscal, legal, labor, trade, and regulation issues, as well as a strategy of optimum supply chain for their operations, to mention a few.\u00a0 Chinese companies that have already established their presence in Mexico must also seek advice from a local law firm with regional professional experience in order to make their operations more efficient and compliant.\u00a0 Today, Mexico stands as a gateway of opportunity for China.<\/p>\n","protected":false},"excerpt":{"rendered":"