In recent years, the United States has been pursuing a protectionist policy, trying to decouple and break the chain and reshape the chain. In addition to openly imposing tariffs, the United States has also secretly reconstructed the ** chain through "nearshoring" and "friendly shoring". After Biden took office, the United States launched the nearshoring model, transferring the chain from low-cost countries such as Southeast Asia to neighboring Canada and Mexico. However, Chinese companies have been nimble and have accelerated their investments in countries such as Vietnam and India to circumvent regulations and high tariffs. Made in China has gradually occupied the market share in Southeast Asia and has become an important base for China's processing, production and re-export.
With the advancement of nearshoring strategies, U.S. companies are gradually shifting their ** chains to Canada and Mexico. However, Chinese companies are not tied down, on the contrary, they are actively investing and building factories in Mexico. Statistics show that in 2021, Chinese direct investment in Mexico increased by 76% and again by 48% in 2022. Nearly 3,000 Chinese companies have made direct investments in Mexico, including auto brands such as BAIC, JAC, Chery and MG, as well as manufacturing companies such as Hisense and Lens Technology. The U.S. has tried to limit the growth of Chinese companies in Mexico by working with Mexico to strengthen foreign investment screening, but the determination and wisdom of Chinese companies have enabled them to find various ways to respond.
The U.S. and Mexico have joined forces to strengthen cooperation on foreign investment screening. According to the agreement, the two sides will set up a working group to exchange and share information on a regular basis. While the agreement does not explicitly mention China, the U.S. Treasury Department has made it clear that the task force will play a key role in addressing the risks that may arise from certain foreign investments, particularly those involving specific technologies, critical infrastructure and sensitive data. The intention of the United States is clear, that is, to restrict the development of Chinese companies in Mexico, and through screening and review, to include Chinese companies and products originating in Mexico in the sanctions list.
The U.S. actions suggest that they intend to build a security chain of comprehensive surveillance to counter China's economic rise. High-level U.S. officials visit Vietnam frequently in an attempt to elevate the relationship between the two countries to the highest level of comprehensive strategic partnership. It is foreseeable that if success in Mexico is achieved, the United States is likely to adopt a similar strategy towards Vietnam, further restricting the development of Chinese companies in the country. Such actions once again expose the hypocrisy and untrustworthiness of American politicians.
The United States reached out to Mexico in an attempt to restrict the development of Chinese companies in the country. By working with Mexico to strengthen foreign investment scrutiny, the United States is trying to control the ** chain and exert pressure on Chinese companies. However, Chinese companies did not passively accept it, on the contrary, they responded positively and accelerated their investment and construction in Mexico. The next step for the United States may be to turn its attention to Vietnam, further restricting the growth of Chinese companies in the country. In the face of this challenge, Chinese companies need to find new development strategies, such as transforming into core components or technology companies. We are willing to listen to the suggestions and discussions of netizens and explore solutions together.
In the era of globalization, international cooperation and competition are becoming increasingly fierce. As a global hegemon, it is not difficult to see from the actions of the United States in recent years that they are trying to restrict the development of Chinese companies on a global scale with the aim of safeguarding their own interests. However, not to be outdone, Chinese companies have actively responded to the U.S. strategy of decoupling and disconnecting the chain with their smart wisdom and flexible adaptability. Through investment and the transfer of production capacity, Chinese companies have achieved new development opportunities in countries such as Mexico. However, in the face of continued pressure from the United States, Chinese companies still need to find innovative development strategies to ensure that their interests are not violated. Through the thoughts and reflections of this article, I hope to provide some inspiration and ideas for the future development of Chinese enterprises.