The Chinese government launched a new maritime transport route that will connect with the main Latin American countries, including Mexico, with a reduction of almost 22 percent (21.9 percent) or seven days to conclude the route in 25 days, they publish media in Mexico, citing the Global Times newspaper, a media outlet sponsored by the political party in power.
Mexico's international trade with China grew at 21.7 percent in average annual growth rate (AAGR) between 1994 and 2022. This increase is almost three times higher than the 7.6 percent AAGR that it registered with the United States in the same period, which is since the entry of the current USMCA (Formerly NAFTA), according to Mexico's foreign trade statistics, reviewed by SteelOrbis.
In 2022, Mexico reported a trade surplus of $207.6 billion with the United States and a trade deficit of $107.8 billion with China.
Canacero data, reviewed by SteelOrbis, show that Mexico imported 1.2 billion metric tons (mt) of steel from China in the first 10 months of 2022. That was around 121,000 mt per month, a volume that represented a year-over-year increase of 58.9 percent. This increase in volume was recorded despite the fact that since last August Mexico decreed a 25 percent tariff on the import of several products, including steel from countries with which it does not have free trade agreements.
The new shipping route will also meet the input requirements of Chinese companies with investments in Mexico. Just in December, SteelOrbis announced the opening of the Lingong Machinery Group (LGMG) plant, with an investment of $140 million to produce mobile platforms in the northern state of Nuevo León.
The Chinese company Xinquan also announced in December the construction of a new factory in the central Mexican state of Aguascalientes to produce auto parts with an investment of $100 million. According to the Mexican government, between January and November of last year, it recorded investment announcements from Chinese companies for $12.6 billion.
Although the media in Mexico, nor the Global Times, report, the Chinese government has its own shipping company: China Ocean Shipping Company (COSCO). According to reports in the specialized press, COSCO is one of the five largest container shipping companies in the world.
According to the Global Times report, Latin American countries export seafood products, beef and pork, fruits, cereals and alcoholic beverages to China, and China sends glass and steel to America in various forms, directly and indirectly through automobiles, appliances, bicycles, among other products.