Mexico Aims To Slash $104 Billion Trade Deficit With China By 2030

(MENAFN- The Rio Times) Mexico's President Claudia Sheinbaum unveiled an ambitious economic strategy aimed at reducing the country's staggering $104 billion trade deficit with China.

The "Plan Mexico" sets its sights on boosting domestic manufacturing and attracting $277 billion in investments across 2,000 projects by 2030. The plan targets key sectors including textiles, automotive, pharmaceuticals, and aerospace.

It aims to replace 15% of imported sewing thread with domestic suppliers. Additionally, it seeks to develop local companies producing polymers and electrical harnesses for the automotive and aerospace industries.

Job creation is a central focus, with the goal of generating 1.5 million new positions in specialized manufacturing and strategic sectors. By 2030, Mexico hopes to increase domestic content in global value chains by 15% in key industries.

This economic shift comes as Mexico recently surpassed China as the largest exporter to the United States in 2023. U.S. imports from China decreased by 20% to $427.2 billion, while imports from Mexico rose 5% to $475.6 billion.



The timing of this announcement is significant, as it addresses concerns raised by U.S. President-elect Donald Trump about China's growing influence in the Mexican economy. The plan seeks to balance Mexico's relationships with both China and its North American partners.

Mexico's strategy aligns with broader economic trends, as the country positions itself as a key manufacturing hub. The success of this plan will depend on Mexico 's ability to attract diverse investments and maintain good relations with its major trading partners.

As global trade dynamics continue to evolve, Mexico's role becomes increasingly important. The country's ability to balance competing interests will shape its economic future and impact regional trade relationships.

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