FOR THE FIRST TIME IN 20 YEARS, CHINA IS NO LONGER THE MOST EXPORTING COUNTRY TO THE US.

Date 13-09-2023 Views 10130

The usurpation after 20 years confirms how rapidly the world has changed in the past decade.

 

 

For the first time since 2003, the US is importing more goods from Mexico than China, according to data from Bank of America. The "usurpation" after 20 years comes from many reasons, mainly because the economic relationship between the US and China has become tense. In the new context, American companies have been rapidly diversifying their supply chains, increasing production capabilities outside of China.

Last summer, computer manufacturer HP announced that it would move its production line with a capacity of millions of laptops from China to Thailand and Mexico. Even Apple – a company with most of its products made in China – is starting to shift its supply chain to some Asian countries.


An important reason for Mexico's export turnover to the US skyrocketing is that in the past decade, US auto companies have strongly pushed to move production lines to Mexico. We can mention names such as Ford, General Motors, Chrysler, in addition to companies from other countries such as Kia Motors, Volkswagen, Nissan, and Mercedes-Benz that have opened factories in Mexico.

Some Chinese manufacturers have even moved to Mexico to serve American customers while still avoiding geopolitical risks. Household electrical appliance manufacturing company Hisense is one of them, along with many auto parts manufacturers.


The items that the United States imports the most from Mexico include vehicles, machinery and mineral fuels.

 

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