As Mexico and China work toward establishing greater diplomatic ties,bilateral trade between the two global manufacturing superpowers is projected to hit an all time high in the very near future,following a new set of major deals and agreements signed between Chinese President Xi Jinping and Mexican President Enrique Peña Nieto.
“Exports to Asia jumped by nearly 15 percent in the first half of 2013,accounting for almost five percent of the total,according to data from the national statistics agency,” writes Reuters. “Exports to China rose by more than a quarter in the January-June period to some $3.3 billion,although that was dwarfed by the volume of Chinese exports reaching Mexico at $28.7 billion.”
In recent years,China and Mexico have also become major partners in the political and commercial realms,according to Qiu Xiaoqi,the Chinese Ambassador to Mexico. On the commercial side,the tourism sector is of particular interest to China,since Mexico has emerged in recent years as a favorite destination among Asian travelers.
“Mexico is one of the most important tourist destinations for Chinese citizens,” stated Qiu. “We have to work hard to strengthen our relations and cooperation.”
In addition,Mexico and China are in talks to create a joint infrastructure investment fund that would provide more than $2.5 billion for spending on projects throughout Latin America’s second largest economy. Between now and 2018,Mexico is expected to see more than $300 billion in both public and private spending on infrastructure,including more than $100 million in the telecom and transportation sectors alone. Specifically,Peña Nieto’s plan involves putting two new satellites into orbit,tendering two new national television networks,building at least 15 new highways,improving the nation’s rail networks and updating several of Mexico’s largest sea ports.
Recent developments also include an expected boost of more than 20 percent over the next ten years in Mexico’s tequila exports to China,following the removal of a ban on imports of premium blue agave tequila that was lifted by Xi during a visit to Mexico in August of last year. Since then,Mexico has already exported more than 520,000 liters of premium tequila to China,prompting foreign diplomats,trade officials,investors and liquor producers to prepare for an impending boom,which is expected to bring strong growth to the sector this year and in the future,according to Ramon Gonzalez,who is Mexico’s national tequila director.
“Much like French Champagne or Italian Parmesean cheese,blue agave tequila has a protected designation of origin and can only come from five Mexican states: Jalisco,Guanajuato,Michoacan,Nayarit and Tamaulipas,” writes Reuters. “There are signs big distillers are eyeing tequila companies with renewed interest,banking on the expected Chinese boom and growing U.S. demand.”