Recently, the United States has made it clear that it does not intend to get along with China and actively supports the Philippines' actions in the South China Sea. They are working not only with the Philippines, but also with Mexico. According to reports, U.S. Treasury Secretary Janet Yellen visited Mexico and announced the intention of both sides to establish a bilateral working group on foreign investment review. Although the United States did not explicitly name names, given the current tensions between China and the United States and the growing cooperation between China and Mexico, it can be seen that the United States is mainly a response to China.
In Mexico, China has become the fastest growing destination for foreign investment. This prompted the U.S. and Mexico to establish a foreign investment screening mechanism, which is actually an action against China. Yellen also revealed that as long as there is proper review and these investments do not cause concern to Mexico and the United States, they will definitely not oppose China's investment in Mexico, nor will they restrict their exports to the United States. Obviously, the United States is trying to restrict Chinese investment in the name of ***, and uses this as a kind of exaggeration, implying that Chinese investment may bring *** risks. Therefore, it can be seen that the United States and Mexico signed this agreement, not for the sake of Mexico, but to restrict Chinese investment openly through the so-called "security".
The signing of this agreement between Mexico and the United States means that Mexico will need the consent of the United States to obtain funds from any country from which it will receive funds in the future. With the strength of the United States, will they allow any development in Mexico?Will they sit idly by and watch Mexico get funding from other countries and grow?At least as far as I can see, the U.S. is doing more at China this time than reaching out to its own allies. Because of China's rapid development, the Chinese market is very popular, and other countries will accept Chinese investment even without Mexico. Therefore, this move by the United States may have some impact on China, but more often than not, it will cause heavy losses to Mexico.
Looking at the relationship between the United States and its allies, including Japan and South Korea, although they still cooperate with China despite the tensions between China and the United States and the suppression of China by the United States, their economies cannot be supported by China. Even if they are on the opposite side of China, these countries still need China's help and assistance at a critical moment. The same is true in Mexico. Although this time it is only for Mexico, it is clear that this is just the beginning. Over time, the U.S. may impose censorship restrictions on countries such as Japan, South Korea, and the European Union, which will inevitably affect investment and employment in these countries. The ripple effects could affect the economies of allies and could even drag down the global economic recovery. This is not an exaggeration at all, after all, China is the world's second-largest economy after the United States.
The U.S.-Mexico move to establish a bilateral working group on foreign investment review is effectively a restrictive measure on Chinese investment. Although the United States claims to be motivated by *** considerations, the intention behind it is obvious, which is to restrict China's development under the pretext of so-called "security". However, this approach not only has an impact on China, but is more likely to cause losses to allied countries. Tensions and restrictions between the United States and its allies will have a negative impact on the economies and jobs in these countries, and may even drag on the global economic recovery. In today's world, China's rapid development and strong market demand are still willing to accept Chinese investment, even if it is subject to a certain degree of restrictions. Therefore, the United States may have to adjust its plans, and instead of giving China a "big gift," it may be beaten to its own people.