Global Insider: China-Mexico Trade Relations

Mexico's economy minister sent China a formal letter last month expressing concern over unfair trade practices used by certain Chinese firms to avoid customs duties. In an email interview, Rhys Jenkins, a specialist in China's trade relations with Latin America at the University of East Anglia, discussed the trade relationship between China and Mexico.

WPR: What is the history of China-Mexico trade ties?

Rhys Jenkins: Trade between Mexico and China has grown spectacularly over the past decade from a little more than $3 billion in 2000 to almost $50 billion in 2010. The trade balance, however, has been massively in favor of China, with the value of Mexican imports running at 10 times that of exports to China, according to Mexican figures. China reports a much smaller trade surplus with Mexico, and the picture is confused by "triangulation," where goods pass through third countries, particularly the U.S. There is no doubt, though, that Mexico does register a large trade deficit with China since it has not developed significant exports to China, unlike some of the major South American countries.

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