It would be absurd to get away from China in the commercial area, says specialist

The national security of the region must undoubtedly be a central objective of Mexico; However, giving tariff threats to cut indispensable supplies and moving away from China, a country that will become the largest market in the world, is absurd, said Sergio Ley López, former ambassador of Mexico in that country (2001- 2006).

The specialist stressed that what the Mexican government should do, rather than build a barrier to prevent the passage of Chinese products, is to diversify its commercial exchange with the Asia-Pacific region, while inviting companies from that nation to invest in sectors where you need.

Nor will we allow any country to install missiles; They are welcome if you want to make medical supplies, for example. If they (China) already have technology, machinery, etc., that come to manufacture it here. They are pragmatic, if they see that they will lose market they will want to do it in Mexico, but they don’t want a hostile climate either.

The American government published on Tuesday in its federal registry the proclamation of President Donald Trump for which he imposes universal steel and aluminum tariffs of 25 percent as of March 12, and accused China of using Mexico to send aluminum to his country and thus avoid tariffs. The governments of Canada and the United States have been pressing Mexico to apply the same tariffs as them.

In recent months, the Mexican government has undertaken a series of measures against China, including several investigations against the dumping to steel plates, and recently to ammonium sulfate. In addition, it has carried out a series of operations throughout the country to seize products that entered the country illegally, mainly of Chinese origin.

He explained that while these are not sufficient reason for China to break commercial relations with Mexico, they have caused discomfort, which can cool the relationship: We must not forget that China is the second most important economy in the world, very close to that of the United States, which has a GDP of around 24 billion dollars, while that of the Asian giant is in 19 billion.

Foot shot

Law López explained that while the United States tariffs to Mexico are a foot shotIt would also be if Mexico decides to cut the supplies that it buys from China, since 80 percent of imports from there are intermediate goods, that is, products that when they arrive are integrated into more sophisticated ones and then export or sell within the country .

These imports are goods that Mexican industry needs for the products we are manufacturing here and then export. Are we going to shoot ourselves in the foot cutting the supplies of the Mexican industry? Replace what we are currently importing from China will take us 20 years, which is what we create the infrastructure. What we have to do is invite Chinese companies that are manufacturing in Mexico and that they supply the Mexican industry to come to manufacture it to Mexico. And so we create a virtuous circle.

From its point of view, Mexico is between the sword and the wall as a consequence of its lack of diversification (more than 80 percent of its exports go to the United States), which is the result to have fallen in his laurels For decades attending the needs of a single market.

For example, the case of Chile, that a third of whose products are destined for the United States, another Chinese third and one more Europe. A very good diversification. And it seems absurd to move away the largest market in the world, forget about the United States: China has a middle class with high purchasing power that exceeds 400 million people.

Law López does not agree with the United States accusations that foreign investment in China in Mexico has increased excessively: Do not come and tell us that we have to stop that investment. I totally agree that our first defense is the security of the United States, so attempting against them is to do it against ourselves and against that of all North America, but the solution is not to put a barrier to Chinese products.