The recent signing of a foreign investment review agreement between the United States and Mexico to restrict Chinese investment in Mexico is actually another move by the United States to impose restrictions on China. Against the backdrop of current tensions between China and the United States and increasingly close cooperation between China and Mexico, the United States is clearly concerned about China's investment behavior and is trying to restrict the flow of foreign capital in China under the pretext of ***. However, in fact, Mexico is one of the fastest growing places for foreign investment in China, and Chinese investment in the Mexican market has not only had a positive impact on the Mexican economy, but also helped Mexico to further OEM Chinese products and enter the U.S. market. Therefore, this move by the United States is not for the sake of Mexico's ***, but to suppress China by restricting Chinese investment.
However, this move will not only affect China, but also cause serious losses for Mexico. Mexican products are exported to the U.S. with zero tariff status, and many Chinese companies choose to invest in Mexico and enter the U.S. market. However, the agreement signed between the United States and Mexico means that any future funding from Mexico will need to be approved by the United States, which shows that it is possible for the United States to control Mexico's development. In my opinion, this time the US move is more of an attempt to bypass China and reach out to its own allies.
In addition to Mexico, why do U.S. allies, including Japan, South Korea, and the European Union, cooperate with China despite tensions between China and the United States, and the U.S. suppression of China?This is because the economies of these countries cannot be separated from China's support. Although at some point they may have heeded the advice of the United States and sided with China, they still need China's assistance and support at critical moments. The same is true for Mexico, and although it is currently only happening in Mexico, it is clear that this is just the beginning. Over time, U.S. scrutiny will extend to countries such as Japan, South Korea, and the European Union, which will inevitably affect investment and employment opportunities in these countries. The consequences of this are not only affecting the economic development of America's allies and partners, but also potentially dragging down the recovery of the world economy. This is not an exaggeration, after all, China is the world's second-largest economy after the United States.
The United States has tried to protect its own markets and interests through restrictions on China, but it has underestimated China's power and influence. As the world's second largest economy, China is particularly strong in terms of economy, science and technology, and culture, and its market has also attracted global attention. Even if it loses Mexico as an investment target, China will still look for other partners to expand its outbound investment. Therefore, the United States is wrong in its calculation of trying to hit China through Mexico. At the same time, restricting Chinese investment would cost America's own allies even more, which clearly outweighs the cost.
The foreign investment review agreement signed between the United States and Mexico is ostensibly for Mexico's best considerations, but behind the scenes, it is aimed at restricting Chinese investment and suppressing China's economy. However, such a move by the United States will not only harm China's interests, but also bring losses to its own allies and partners, and may drag down the global economic recovery. The United States has tried to protect its interests by restricting Chinese investment, but it has underestimated China's power and influence. As the world's second largest economy, China's economic and other development will not stop, it will look for other partners, and continue to expand its foreign investment. Thus, the impact of U.S. restrictions on China is limited, while the damage to the U.S. itself and its allies cannot be ignored. In the era of globalization, cooperation and win-win results are the fundamental way to solve economic problems, and any one-sided restrictions will only have a negative impact. We hope that the United States will have a clear understanding of the situation, return to the track of cooperation, and work with China and other countries to promote the development and prosperity of the world economy.