China’s Complex Sentiments Towards Mexico: Balancing Act Between Trade Partner and Immigration Woes

A recent photo of a Chinese-Mexican economic exchange meeting held in Wuhan, Hubei province, China./Jingji Ribao (Economic Daily).

China’s ambivalent feelings towards Mexico are becoming increasingly apparent. While Mexico has been a significant aid to China as a base for bypassing exports to the U.S., the reality of the U.S.-Mexico border being a popular route for illegal immigration by Chinese citizens complicates matters.

Diplomatic sources in Beijing mentioned, on the 23rd, the distribution path of the drug fentanyl, which is causing problems in the U.S. The drug ingredients produced in China are said to enter the U.S. through Mexico.

Furthermore, as China recently began actively using Mexico as a base for bypassing exports to the U.S., relations between the two countries have become closer. Based on last year’s data, China’s exports to Mexico increased by 30% compared to the previous year.

Industry insiders revealed that most Chinese products are moderately processed in factories throughout Mexico or become finished products through so-called “label changes” and then exported to the U.S. by land. This is due to the U.S.-Mexico-Canada Agreement (USMCA) offering extensive tariff reduction benefits.

Given the circumstances, China’s local investment in Mexico has recently skyrocketed. It is estimated that approximately $9 billion was invested from early 2018, when the U.S.-China trade war intensified, until the end of last year. Even BYD, targeting the U.S. electric car market, recently confirmed plans to build a factory in Mexico.

Meanwhile, last year, a staggering 12,000 Chinese people were arrested while trying to enter the U.S. through the Mexican border illegally.

Also, Mexico is solidifying its position as the U.S.’s largest trading country, surpassing China. Mexicans’ resentment and anti-Chinese sentiment, especially those with significant economic power, are substantial.

A diplomatic expert advised, “For China, Mexico is ‘neither close nor far,’ signifying the challenge of establishing proximity while also avoiding distance.”