This BBC article looks at the rapid growth of Chinese FDI into Mexico which - in part - is being driven by Chinese manufacturing firms wanting to by-pass US import tariffs and trade sanctions. It chimes in well with my recent country profile video on the Mexican economy.

More here from the Financial Times: China circumvents US tariffs by shipping more goods via Mexico (February 2024)

Graham Watson's insight:

I'm not sure I approve of the tone of this article: why is Mexico a 'backdoor' to Chinese firms manufacturing furniture in Mexico? Isn't Chinese FDI into Mexico providing jobs, training, import revenues and taxes to Mexico?

I can only assume that US FDI allowing US-owned firms to manufacture overseas are going to be portrayed as a backdoor too. Imagine how many backdoors the US has into the EU - it's scarcely worth bothering with the front door.

And if it provides US citizens with greater choice, and cheaper furniture then the only people that seem to lose out are US furniture manufacturers - of whom there are far fewer than there were - and the people who work for them.

So rather than portray the Chinese investment in Mexico as malign, why doesn't the BBC celebrate the fact that it shows the dynamism, and potential gains from trade.