Analyzing Mexico’s Trade Imbalance with China and the Quest for Balanced Economic Relations

In 2022, Mexican imports from China amounted to a substantial $118.6 billion, while the nation’s exports to China lagged far behind, revealing a significant trade imbalance. Official data from the Bank of Mexico underscores this disparity, with Mexican imports from China exceeding exports by more than tenfold.

Specifically, for every $10 worth of goods and services that Mexico sold to China, it imported a staggering $100. In 2022, the total value of goods and services imported from China by Mexico reached $118.6 billion, while the country’s exports to China only amounted to $10.9 billion, highlighting a significant trade gap.

This trade trend has persisted into the current year, with data from the central bank indicating that between January and July, Mexico’s exports to China reached $5.98 billion, whereas imports stood at $63.85 billion, maintaining a roughly tenfold difference.

Chinese Ambassador to Mexico, Zhang Run, emphasized that China does not aim to maintain a unilateral trade surplus with its second most significant trading partner in Latin America, with Brazil being the largest. Zhang Run emphasized China’s commitment to free trade and openness, welcoming Mexican and other international products as long as they meet the required standards of quality and excellence to compete effectively in the vast Chinese market. He also called on Mexico to enhance trade and investment conditions to further bolster bilateral trade.

Enrique Dussel Peters, Coordinator of the China-Mexico Studies Center (Cechimex), pointed out the missed opportunities over the past two decades to strengthen the trade relationship with China, primarily due to a lack of interest, understanding, and strategic vision on the part of successive Mexican governments.

Dussel Peters warned that Mexico should adopt a proactive strategy towards China, considering its rapid economic growth, which is projected to make it the world’s largest economy in the coming years. He stressed the significance of engaging with China on a strategic basis rather than a reactive one, especially given China’s position as Mexico’s third-largest trading partner, trailing only the United States and Canada.

Despite the trade imbalance, there was substantial growth in foreign direct investment (FDI) from China in Mexico during 2022, witnessing a 48 percent increase compared to the previous year. However, this surge in FDI, amounting to $2.52 billion, still accounted for only 7 percent of Mexico’s total FDI in 2022, highlighting the relatively modest level of Chinese investment in the country, considering China’s status as a major trade partner.