Beyond China! Mexico becomes the United States' largest import source...

Issuing time:2024-02-23 Author: Back to list

Mexico surpasses China for the first time

According to data released by the U.S. Department of Commerce, Mexico surpassed China for the first time in 2023, becoming the largest source of imported goods for the United States. This marks the first time in over two decades.

This shift is seen as part of the "de-risking from China" strategy promoted by the Biden administration, encouraging businesses to find new suppliers in allied countries or bring manufacturing operations back to the United States.

During the period from 2022 to 2023, the value of goods imported by the United States from Mexico increased by nearly 5%, reaching over $475 billion. Meanwhile, the value of goods imported from China to the U.S. decreased by about 20%, dropping to approximately $427 billion. This marks the first time since 2002 that Mexico has surpassed China as the largest source of imported goods for the United States.

Analysts point out that the most significant declines in goods imported from China to the U.S. are concentrated in politically sensitive areas for the U.S., such as computers, electronics, chemicals, and pharmaceuticals.

To reduce dependence on these areas, the U.S. government is actively promoting the "de-risking from China" strategy, encouraging domestic companies to find new suppliers in allied countries or bring production lines back to the U.S.

Simultaneously, the impact of the COVID-19 pandemic on global supply chains has further prompted U.S. companies to seek a "nearshoring" supply strategy closer to home.

In this context, Mexico appears to be one of the primary beneficiaries of the U.S. "de-risking from China" strategy. However, the actual situation is much more complex than it may seem on the surface.

Chinese manufacturers explore alternative paths

According to a report by the American Broadcasting Company (ABC), some Chinese manufacturers have established production bases in Mexico, taking advantage of the favorable conditions provided by the United States-Mexico-Canada Agreement (USMCA) to gain more benefits.

This suggests that, despite U.S. efforts to reduce dependence on China by diversifying the supply chain, in certain situations, these efforts may merely shift the production process from China to other countries that still maintain close economic and trade ties with China.

Jeff Schott, a researcher at the Peterson Institute for International Economics in Washington, pointed out that when evaluating trade flows, solely focusing on the total import amount at the national level is not sufficient and requires a more detailed analysis.

Schott emphasized that Chinese companies are increasing their foreign direct investment in Southeast Asia, which could lead to more products being manufactured in these regions and ultimately impact the flow of imports to the United States from Southeast Asia.

At the same time, although the U.S. has seen an increase in import dependency on Mexico and a decrease in dependency on China, this trend may be considered an example of nearshoring. However, this trend could also be a result of companies relocating production from China to Mexico to better access the U.S. market.

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