Recently, the United States has continued to support the Philippines in the South China Sea, indicating that the United States has no intention of getting along with China. Meanwhile, U.S. Treasury Secretary Janet Yellen visited Mexico and signed a memorandum of intent with Mexico** to establish a bilateral working group on foreign investment reviews. Although the U.S. side did not name them directly, it can be considered that the current tensions between China and the United States and the cooperation between China and Mexico can be considered that this move is largely aimed at China. Yellen even revealed that as long as there is proper censorship and these investments do not cause concern to Mexico or the United States, they will definitely not oppose Chinese investment in Mexico, nor will they oppose exports to the United States. From this point, it can be seen that the United States' move is not out of Mexico's considerations, but under the guise of so-called "security", openly and covertly restricting investment in China. Since most of Mexico's products enter the U.S. market with zero tariffs, many Chinese companies choose to invest in Mexico and enter the U.S. market. The question, however, is whether the long-arm jurisdiction of the United States is really directed at ChinaIn other words, is this move by the United States secretly reaching out to its allies?You know, the agreement signed between the United States and Mexico means that Mexico will need the consent of the United States to use any country's funds in the future. In the American way of acting, will they let Mexico develop freely?Can they stand not taking Mexico under their control?In my opinion, this move by the United States is more about bypassing China and reaching out to its own allies. With the rapid development of China, the Chinese market has become very attractive. Even without Mexico, there would be other options, so it is possible that China will be affected by this move by the United States, but more often than not, Mexico will suffer huge losses. Why do US allies, including Japan and South Korea, choose to cooperate with China despite the tension between China and the United States and the United States trying to suppress China?To put it simply, this is because their economy is fundamentally inseparable from China. Even if they are on the opposite side of China, they still need China's help and help at a critical moment. The same is true for Mexico, although this time it is only for Mexico, but it is clear that this is just the beginning. In the future, similar scrutiny may be extended to countries such as Japan, South Korea, and the European Union, which will inevitably affect investment and employment in these countries. The consequences of this will not only affect the economic development of allies and partners, but also threaten the global economic recovery. This is not an exaggeration, given that China is the world's second-largest economy after the United States. Therefore, the United States miscalculated, and their "big gift" could not be delivered to China, and at the same time, this punch against China would hurt itself. (Dorae).
The strategic intent behind the recent signing of a foreign investment review agreement between the United States and Mexico is essentially aimed at China. At present, China is one of the fastest growing foreign investment destinations in Mexico. The U.S. move is intended to reduce China's competitiveness in the Mexican and U.S. markets by restricting Chinese investment. The U.S. chose Mexico as the initial target because Mexico, as a member of the North American Free Trade Area, has close economic and trade ties with the United States. The move is aimed at influencing the investment choices of other U.S. allies by containing Mexico, and is actually an attempt to establish an economic system under "U.S. control."
However, under this kind of strategic thinking made by the United States, it is easy to ignore the real needs of allied countries and the feasibility of cooperation. Whether it is Japan, South Korea or EU countries, their economic development is inseparable from the huge market of China. Therefore, despite the tensions between China and the United States, these countries have chosen to cooperate with China because they understand that they can better protect their own development interests by working with China. Unilateral actions by the United States will undoubtedly undermine the order of international cooperation and will also have a negative impact on the global economy.
This action by the United States will not only have a negative impact on Chinese investment, but also cause unnecessary harm to its own allies. Mexico is a case in point. As the southern neighbor of the United States, Mexico has always been an important place for the U.S. market, and the two sides have a close relationship. However, the U.S. Foreign Investment Review Agreement will mean that U.S. approval will be required for Mexico to seek funding from other countries. As a result, Mexico's economic development will no longer be free and more likely to be controlled by the United States. This will undoubtedly weaken Mexico's national independence and ability to develop autonomously.
The U.S. is likely to adopt similar scrutiny measures against other allied countries in the future, which will also have a negative impact on economic investment and employment in these countries. Countries such as Japan, South Korea, and the European Union will all face a similar dilemma as Mexico. The development and economic prosperity of these countries is not only vital to their own national interests, but also has an important impact on the global economic recovery. Therefore, the unilateral actions of the United States will drag down its own allies and even adversely affect the global economy.
Despite U.S. attempts to contain China's growth by restricting Chinese investment, the Chinese market remains one of the most attractive markets in the world. Even if Mexico is lost as an investment destination, China will still have more options. China's rapid growth has made it the world's second largest economy, and at the same time, it is also an important support for the economic development of many countries and a market dependence. Whether it is international, investment cooperation or geopolitics, China's position has become more and more important.
Given China's influence on the global economy, the U.S. strategic intent is ultimately self-defeating. Trying to restrict Chinese investment on so-called security grounds will only harm the United States' own interests. By restricting cooperation between allies and China, the United States will not only incur resentment from its allies, but may also lead to the weakening of its own position. After all, international cooperation and win-win results are important cornerstones for achieving economic prosperity. Therefore, the United States should revisit its strategic decision-making and work with global partners to promote economic development and cooperation, rather than harming its own interests and those of other countries through unilateral actions, according to recent reports, U.S. Treasury Secretary Janet Yellen visited Mexico and signed a memorandum of intent with Mexico** to establish a bilateral working group on foreign investment review. Although the U.S. side did not name names, it can be speculated that it was a move against China, given the tensions between China and the United States and China's growing investment in Mexico.
Mexico is one of the most important destinations for Chinese investment in Latin America. Chinese investment in Mexico not only brings economic development opportunities to Mexico, but also facilitates the entry of Chinese companies into the U.S. market. Therefore, it is likely that the U.S. move is motivated by concerns about Chinese investment and is trying to limit China's influence in the U.S. market by censoring foreign investment in Mexico.
However, the U.S. approach could have a negative impact on its own relations with Mexico. Censorship of foreign investment in Mexico will limit Mexico's economic development and may even make Mexico feel controlled. This not only risks weakening Mexico's national independence, but also shifts Mexico to working with other countries to reduce its dependence on the United States.
In addition, this move by the United States could also have a negative impact on its relations with other allied countries. Japan, South Korea and other countries are also allies of the United States and are also dependent on the Chinese market. If the U.S. continues to restrict Chinese investment and tries to influence the choices of other allies, this could lead to damage to their relations with the U.S. and affect regional stability and cooperation.
In conclusion, the U.S. Foreign Investment Review Agreement for Mexico may be a practice for Chinese investment. However, this move could have a negative impact not only on China, but also on U.S. relations with Mexico, as well as other allied countries. Instead, the United States should reassess its strategic decisions and work with global partners to promote economic development and cooperation to achieve a win-win situation.