Can Mexico Become the New China?
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- Äas pĆidĂĄn 13. 02. 2023
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Could Mexico become the new China? In this video, we tell you how the paradigm of globalization and offshoring that has dominated the economy in recent decades may be losing momentum. Xi Jinping's China, the country that has reaped the most benefits from this economic system is now confronting the West, this has caused some walls to re-emerge and concepts such as Nearshoring have become fashionable.
These days, bringing production closer to home is starting to be a priority for major Western economies, and guess what? Mexico could play a key role in this whole story. In this video we tell you about Mexico's great opportunity for becoming a key player in the global economy.
As an American, a growing prosperous Mexico is very beneficial to The US.
We are becoming more like family every decade.
You two are already family, host and servant
This Canadian couldn't agree more
Except most Mexicans dislike the U.S have a Very small population compare to China and they will NEVER allow US companies to pay employees 10 dollars a day!
As a Mexican i believe we shouldâve done a loooooooong time ago. This is mutually beneficial for both countries that share a lot economically, geographically and culturally.
And Canada too
Iâd be happy to see supply chains moved to Mexico, as well as a more prosperous Mexico.
thanks Scott...
Mexico was right next to the US before manufacturing was moved to CN, why didn't the US choose Mexico then?
@@dancerinmaya6813 profit
@@dancerinmaya6813 because they cant empower a potential enemy thats right next door. gotta keep the boot on the neck of Mexicans and never give them a chance to breathe ever since they were subdued.
As an Irish American living in California this is great news. Always very close relations with Mexican people. A century ago we were Mexicans to the Anglos. I support a strong united North America USA, Mexico and Canada.
That was because of the St. Patrick's battalion that decided to support Mexico in the war against the United States, we will always be grateful to Ireland for that gesture of gratitude
@@ricardocabrera3627 As an Irishman I am very proud they fought for Mexico. USA is no different than the British empire still occupying part of Ireland. I will always consider Mexicans my brothers & sisters, hermano y hermana.
We love Irish people in MĂ©xico, and we will never forget the help.
@@geovannycoral6388 The feeling is mutual hermano.
We have a bit of red hair in my family, we can guess where that comes from. Not a lot of Americans believe me when I say the Irish and Mexican have more in common than they think. Also, thanks to the Irish, we got Canelo đ
Mexico will take advantage of this and will grow. There are many massive projects Mexico is undertaking that most people donât know of yet. It will be the Mexican decade. Iâm already planning on investing. Iâm lucky enough to be dual citizen đșđž đČđœ
But how about narco cartels? Can state guarantee security?
@@wach9191 thereâs cartels in the US too. They just wear suits.
AMLO needs to go first
@@leocardenas7306 explain
@@ivanThaOoze heâs a communist
Mexico was the âChinaâ before the rise of China. In the 1990s many items in discount stores were made in Mexico. This helped employ Mexicans and relieve pressure on the US border. Stupidly the US embraced China and by early 2000s almost everything on shelves of US stores was made in China. Given the development of cheaper labor alternatives in Asia it will be difficult for Mexico to restore production of đlower priced goods. Better opportunities in higher priced items like cars and major appliances, although those industries donât employ as many less skilled workers. Mexico needs such opportunities to absorb more of its unemployed.
The US is not that exposed to China. The US has more trade with Mexico than it does with China.
When Mexico and Canada are combined as a trade enity trade is twice that of China. I think people are confusing the mass production of cheap plastic junk from China with all economic activity.
Except Mexico was in economic collapse in the 90s.
â@@ernestkhalimov1007 It was in 1994 because of the assassination of a mexican president
Crowbarring China into the WTO was the biggest mistake the United States has ever made.
Embrace China? Mexico have NAFTA and still failed in trade.
The problem with the investment in Mexico was that large corporations were getting too many benefits mainly by bribing politicians. An example is the electrical company Iberdrola mentioned, the former president of Mexico Felipe Calderon works as a top consultant for them now. The reason the Lithium was nationalized is that currently many of the natural resources from Mexico like copper, gold, silver and many other have been given away to foreign companies that do not even pay taxes. Companies that have been taking advantage of Mexico are complaining because now they cannot do that any more. Last year Mexico received the largest amount of foreign investment in its history and the main reason is that now the same rules apply to all investors, where before companies would bribe government officials to block smaller foreign competitors.
neo libs arenât gonna mention this bro they just want to take advantage of Mexico and itâs resources
Indeed, corrupt politicians lining their pockets at the expense of their citizens with bribes from foreign MNC. AMLO has gone on the positive route with lithium as Norway with its oil discovery, i.e. Norway hadn't sold their black gold to MNC's, Shell, BNP...Exxon but rather invested in ethical sovereign wealth fund to invest in their citizens. Thereby, transferring its basic fishing ecnomony...to one of the most prosperous country globally with a high standard of living...
Great points, people before profits
yup, what happened in Mexico iswhathappensin USA. in any industry. Thats why they left USA. in the first place.
Thanks for explaining
Much prefer doing business with Mexico. Very much welcome Mexicoâs development and partnership.
Mexico has the largest lithium reserves in the world in Sonora, the future is electric, and foreigners have taken advantage of Mexico before, nationalization of it is not bad
Private companies don't have to be foreign owned, they may be homegrown as well, as the examples of Taiwan, South Korea, Vietnam, and Japan amply demonstrate.
No It's Bolivia, then Chile,and Peru south America has the largest deposits in litium.
@@JesusRamirez-cg5kh in a single location itâs Sonora
No we're being Lied too that Electric is the future.
It takes coal and gas to power Everything that is electric. And It was NOT that long ago we was being told electric batteries were harmful to the Environment. Now that the Environmentalists are being Paid off, they don't say anything.
@@guydreamr the thing is that private companies sell themselves to foreigners
Unfortunately the biggest threat to Mexican prosperity is its politicians. The same could be said about the USA, but Mexico just has a headstart.
The US is a designed political system that makes it very difficult for politicians to mess up. They may talk about it but never are they allowed to achieve it.
@@bighands69 the difference between the US and Mexico is that the US is better at hiding itâs corruption
@@bighands69 US politicians work for the interest of their lobbyists. Until your leaders resume the trust busting of the early twentieth century your people will continue to become increasingly impoverished to the benefit of the billionaire oligarch class.
Mexico has too much corruption and consistently has a government that just wants to give money away to the poor rather than use the money to build up infrastructure, improve education, and and make more business friendly environment. Almost all the success stories in Asia were from that playbook. Until Mexico makes proper reforms and spends the money on things that will improve business and trade, mexico will just have modest gains relative to Asia.
@@bighands69 The US has lots of checks of balances. I do think they are eroding but still, it's much better than Mexico.
I'm half Mexican, so I hope this happens.
IBM Thinkpad used to be made in Mexico before Lenovo bought the division and moved production to China.
Then you buy Lenovo and move production back to Mexico ,
@@heartbeat8960 Better yet. Stop supply of Intel and AMD chips to Lenovo and buy Dell products.
@@billc6762
Right now there is a series of restrictions being placed on microchips going to China an that will probably end up doing that.
The Mexican decade is going to be great! Both the US and Mexico and even Canada will benefit greatly from. As an American, I am glad to see our governments and cultures embracing each other as brothers!
As far as corruption goes.... I'll take mexico's cartel and even political corruption over communist China's corruption. So to my Mexican brothers and sisters I say, Viva MĂ©xico! Vamos arriba!
It seems strange how we help our rival rather than our own neighbor
Choose your venom as we say, I would rather the cartels who are no less evil and whom can be solved with a strong police force and perhaps US help than the Orwelian government of China which intends to literally take over the US.
Great video but you forgot to mention that Mexico is building the transismic train that will link the Pacific with the Atlantic and where industrial zones will be created, the mayan train is a hugh tourism atraction in order to help the south of Mexico to grow, the north is already prepared for all and growing, in fact, there are new tax rules making them lower in the north to be more atractive for investments, and last year Mexico received the largest amount of foreign investment in its history, the dolar is at its lower exchange point in years, for the first time the foreign debt did not grow, I think this decade eill belong to mexico
Hasta crees que va a decir eso si se la pasa el final del video tiråndole a AMLO, quién es el que estå detrås de esos mismos proyectos.
el es un neo liberal, nunca va decir lo que a hecho AMLO.
the mayan train is going to be a bust just like the AIFA was
Mexico is not going to capitalize on the opportunity unless AMLO and his party are out of power
just this week he nearly scared Tesla off Nuevo Leon.
Tourism is 9% of Mexico's income. And politik just glosses over the train like its just some lame tourist train. He is definitely reading the propaganda. Yes there is neo liberal propaganda in Mexico too.
@@yaddar nearly scared off tesla? is that why Tesla compromised about the water ? if Tesla has its way then there never wouldâve been a compromise in the first place. without AMLO and MORENA rn, Mexico wouldâve been worst off
As a Mexican, I know we will find a way to snatch defeat out of the jaws of victory...
With this godsend of a president, I am certain defeat is the only option. Populism took its grip, and it refuses to let go of the strangle hold until everything beautiful about this country has been destroyed.
I am a German whose family came here in the early 90s because they saw opportunity for growth. I was born here and love this country, but politics and drug trade are two abominable sides of the same coin in this country.
If Mexico still exists... There is a group in the U.S. congress that want to use military intervention in Mexico.
Donât be silly as a Chilean Iâd welcome my new northern Chinese neighbour lol đ loco ya no hablamos el mismo idioma ahora tengo que aprender mandarinâŠ. Forget it
@@fallencielo2701
There is no body in the US congress that wants to invade Mexico. That is just nonsense. There are members who want the cartels dealt with but that is in context with working with Mexico.
Taking snippets of statements made in the heat of the moment is not the same as policy.
â@@bighands69 U.S. weapon industry likes the sound of U.S. intervention in Mexico. In the past and very recent times congress made snippets of statements made in the heat of the moment that were made into foreign policy which lead to war by a minority who later on everyone else jumps in as well. These few folks in the U.S. wants AUMF on the cartel without the consent of the Mexican government. The chances of this happening are slim but never zero.
All hail Mexican aerospace engineers! âïž Long live Mexico's enterprising business pioneers! đ May they and their descendants live in Peace & Prosperity for Ten Thousand years! đđđ
China companies move to Mexico too. This is irony
Chinese companies are moving everywhere to get around the divestment. While it's mitigating, it's still damaging to them because of the permanent added barriers and reduced opportunities to Chinese workers.
as a binational đșđžđČđœ citizen
I like that both countries have a lot of prosperity and work.
I also have a house in Mexico and there are very big cities there too.
There has to be a balance. He is the president to the Mexican people, not US foreign nationals...
And considering our...less than great... history brutally exploiting our N and S American neighbors. yeah, I'd also be a bit weary of allowing US corporate influence to dictate policies in my country
The idea is that by creating obstales for foreign companies, the government could be hurting Mexican citizens. In any case it's really neither here nor there. AMLO is leaving office literally next year, so I'm not sure why he's named as such as significant factor
@@hilaryhongkong Eh in fairness his darling Sheinbaum is a coin flip if she comes in to power. Either itâs be a continuation of AMLOism or a more technocratic Nordic-style administration but is completely up in the air wether her ideology or pragmatism wins out.
Yes, it looks like for US politic analists, a Mexican president should serve US interest or otherwise they are bad presidents. Mexican autonomy seems to be a threat for US politicians and media.
Good to know is not the opinion of evey US citizen.
@@pable95 VisualPolitik is German and views things from the German liberal perspective. They generally lean anti-nationalist and pro-market integration (two cornerstones of the EU) and will support policies and politicians that achieve similar goals in Europeâs main political partner regions (North America & East Asia). They definitely not unbiased but itâs not like there isnât actual reasoning behind their views.
As a Salvadoran American I'm happy to hear Mexico becoming a closer economic ally. China's been a problem these last few decades, it's time to break away.
sup Salvi B)
Lol, as a mexican, we'd more like to work with china. Much better than the states, at least, they've been the problem, not china
China showed their true intentions, should have never left those in the west
I've been saying for years, if the US really wants security on the Southern border we need to work closer with security ties to Mexico to eliminate cartels in both countries, and stop the influx of migrant caravans near the South Mexican Border. They have a natural choke point advantage there, and the outlying provinces could easily be given cut backs for being on the outskirts of that platform.
This would be a huge advantage to the US, encourage more industry to Mexico, and stop our mutual "competitor" China. Not to mention the influence it would give Mexico over central America. Wins all around.
I love how you use those vintage Mexico City shots. Those shots must be from the 60's and 70's. Man have this city of mine changed through the years.
Three facts:
80% of the electricity in Mexico comes from hydroelectric plants. Is that polluting?
Infrastructure projects like the new airport and the train that connects the Pacific with the Gulf of Mexico are bad for economic dynamism as they say?
Being self-sufficient by refining gasoline is bad?
You're lying. 55% from natural gas and another 10% from other petroleum products.
Actually, autarky could only work for maybe twenty countries in the world, Mexico _might_ be on that list, but I doubt it. The aforesaid list would be made up anglophone countries, maybe Russia and India, and a few others.
@@surfboy344 Thank you.
@@surfboy344 your lying too its 73% from natural gas lol what would we do without the quintessential gay boy from up north.
@@surfboy344 natural gas is relatively clean
And 2 weeks after this video was released Tesla announces it's building a giga factory in Mexico. AMLO is not hostile to foreign investments, he has just changed the standard. Since Peña Neto's time, Mexico has dedicated a lot to infrastructure, we thought AMLO wasn't going to do the same but he has, how do I know? I have shops in different states and I travel a lot by road.
Amlo said for a lot o year that hate the neoliberalism and now, all the big achievements like the peso, nearshoring, investment and macro economics are thanks the private initiative, neoliberalism and capitalism, the end of the hipocrecy.
â@@cmnwebeven so the opposition calls him a communist xD
@@cmnweb I am not a Morenista by the way, but AMLO's complaint is that Neoliberalism or at least the model of Neoliberalism when he entered government had stopped working, because it had been corrupted. I am a full blown capitalist by the way, but I too believe that is true, now the differences I have with AMLO are on how we can fix that, but AMLO has always been a capitalist just a different type of capitalist.
@@tenshimx2163 yeah that is the opposition just trying to score cheap political points, AMLO is far from a communist, anyone who has listened to him knows that he is a capitalist.
That was in-spite not thanks to AMLO
my car is made in mexico and i'm pretty happy with it - my country (brazil) has a trade agreement with mexico
đČđœâ€đ§đ·
Which car?
@@uriel_in chevrolet sonic/aveo hatchback '14
Mexico just makes sense. Good for all!
Main difference between China & Mexico is Xi runs a MUCH bigger Chinese Cartel đđ€Ł
And cheaper too!
To harm usa ! They using same Brits tactics !
It's opium tactic if Brits which they used against China ! USA's youths they trying to destroy with this !
Definitely if us starts forcing its companies to manufacture in usa or neighbour countries. Mexico should take advantage of this and also try to solve their cartel problem
Agreed. The cartels are definitely (one of) the biggest issue preventing more investment in Mexico (and South America). I wonder how much force would be required to effectively disassemble the cartels and keep them that way.
Realistically, drug legalization in the U.S. is the only way to solve the cartel problem
@@spacemonk26 Exactly. It would also make the drugs safer. People wouldn't be overdosing on what they believed to be oxycodone, but was actually fentanyl if there were strict regulations like legal pharmaceuticals. There would still be addicts and everything, but out of two shitty choices, legalized and regulated drugs is far less shitty than a wild west black market.
@@spacemonk26 even that is debatable theyâve expanded to other legal of semi legal stuff but it would be a start
Just imagine how much money gets wasted due to corruption and cartel extortion and even then Mexico is a good or better alternative to China
Smart video on the situation of Mexico's economy and foreign investment. Yes Mexico has a great potential if it plays its cards rights. A big market, a dedicated and hard working work force , abundant sources of energy, a beautiful landscape and rich culture . I visited 4 times this beautiful country, I love the kindness of its people and their wonderful native heritage. If president Lopez Obrador is able to find the balance between its policy of social justice and the preoccupation to grow the economy without many penalizing restriction, Mexico could be the next success story in terms of growth in the Americas. Let 's hope the Unites States encourages and accompanies Mexico in this journey.
Hello, Mexican here, first of all we as county have a lot of problems that we should solve by ourselves, however related to Cartel Issue won't resolve with investment, or good will, my personal perspective is that the US have to legalize drugs and threat the problem as a Public Health Issue, on the other hand weapon regulation is necessary also in the US, is really easy for the Cartels to bribe US authorities to ignore weapon inspections on the travel to Mexico, yeah there is also corruption in the USA,
"The right to keep and bear arms shall not be infringed." No, cartels should be dealt with in Mexico. Why do my rights need to be regulated because bad people in another country are doing evil? Foh.
@@toluwanimirobinson2436 agree, just regulate illegal traffic of weapons abroad, I have the right to consume drugs , why my right to do this should be restricted by some addicts in other country ?
Iâm Mexican too and youâre missing the issue brother. Mexico should legalize weapons for itself citizens so they can be safer from the cartels. Regulation of weapons wonât stop the cartels from getting them illegally. Youâre only making it illegal for good citizens to own them and thatâs the biggest problem that Mexicans just canât see
@@Elitecommando501 weapons in Mexico are legal, you can have a Rifle, or a Gun at home, what you cannot have are weapons for military usage, Wich it is quite stupid from my perspective
@@toluwanimirobinson2436 You left out the first part, "A well regulated Militia, being necessary to the security of a free State..."
"Dynamic" for you and foreign companies means "We are here for your Natural Resources without paying taxes".
I tend to see AMLO not in favorable terms, however I do understand why he is doing to âsubvertâ some biz in strategic sectors (manufacturing is not one of them).
The electric for example before him create some private powerplants yes, but not as much as needed and severely overpriced also many non producing private companies receives discounts and tax deductions by closing deals/partnerships with a producing one. The result, higher prices for the persons but huge discounts to companies. While he is doing now is not also the best solution. But anyone with this can see what he sees.
Corporations donât like to pay their fair share, not only in Mexico, everywhere in the world.
Man living in one of best energy powered countries, I wish I pay electricity as the rate in MX rn
Mexico, Vietnam, Phillipines, Thailand and Eastern Europe are very good alternatives to either China or India.
Vietnam( another commĂŒnist countries), history repeats itself
@@josewpmarytr đ but no no no its the good communist
@@josewpmarytr China's hold on the world market is due to their large population size. Vietnam will never have 20% of the world's population. An India that keeps straying away from democratic values is more concerning.
Like what countries in Eastern Europe ? Eastern Europe has changed a lot during the last 20 years.
Not Eastern Europe
It looks like you tried to put a picture of AMLO as blocking big multinational investment, or blocking economy growth, but only shows the deep ignorance about Mexican politics and the biased way of understanding geopilitics from the USA perspective. Just last week, AMLO's federal government closed a deal with Musk for a Tesla manufacturing fabric in Mexico. Giving the Lithium to the state is one of the best ways Mexico have to negotiate with something of value for the current market. Obviously he is protecting the country assets, and investing on projects in favour of the local people, Mexico does not have to always do things that favours US and their multinationals. Mexico is blessed of having a president that is for once protecting Mexican interest and still creating conditions for international investment, but not just giving our resources for free to multinationals like it was done during the last 30 years.
Great video THank you
I live in Japan. I am Mexican-American and there are many Japanese car manufacturing companies have already been in Mexico. Please look at Leon and Monterrey. There are many Japanese car companies there.
I think it's better our manufacturing in safe and democratic countries such as mexico, phillipines , instead of dïctÀtor countries such as vietnam or china
Yes
Safe and democratic, lol
@@BodybuildingNews You're right. Look how close we came to losing our Democracy a couple of years ago.
âSafeâ and â democracyâ donât go well with Mexico anymore
Ah yes a famously safe and democratic country of Mexico đ€Ł
I canât wait to see when more countries reach greater potential.
Wonderful thanks
I'm Mexican and I am a History major which allows me to give some extra context and perspective.
Yes, Mexico has seen economic growth since the free trade agreement with the US and Canada was signed but the benefits of this are overwhelmingly received by multinational companies, rich industrialists and politicians. The chart showing that wages in Mexico are lower than in China prove this, even people with college education are earning way less than they should.
Also, if Mexico agrees to this "oportunity" it will also mean that the US will have even more power over policies. This has been a constant issue throughout our history, and there are examples of the US rigging elections so the politicians that are more agreeable are elected. President Carlos Salinas, who signed NAFTA by the way, won a blatant dirty election.
I will also note that the "Cartel Problem" is caused by the US market and in exchange thousands of guns are smuggled into Mexico. The cartels use violence to protect the enormous income they get from the US drug users and are able to invest in corruption.
The environmental cost of this would also increase alongside the economic growth. And, in the past, US and Canadian, companies have paid off politicians to avoid any sanctions for the polution they are responsible for even when they harm local or indigenous populations.
Lastly, I don't trust that US companies would treat Mexican workers fairly or even with dignity. They don't even treat US citizens very well.
Very valid points....what is Mexico's alternative? Be an antagonist to the US? Venezuelan socialism?
I'm from Portugal in Europe, not exactly a country with own many big multinationals, and also not atractive to them unfortunatly by several factors. Whith incompetent politicians, and with a corruption problem for european standards although nothing near the cartel problem in Mexico. The more developing sector has been tourism wich keeps the country afloat or even growing a bit. But tourism has it's problems too.
So you may be right about what hapened in Mexico, but you are wrong about what your assumption of what will hapen.
And about the rich taking hugely much more of the profit than the populations, well that hapens literaly in about every country of the world about since humanity started. It is just more in the open for everyone to see in the more democratic countries where free information exists. Even in North Korea, China, Russia, or in the dead Soviet Union the powerfull have whatever they wante, but simply there is no information.
So, there are 2 sides in the wages being lower in Mexico then China. Chinese wages have become higher because of what hapened on China that you are refusing for Mexico. The great multinationals gone there after the low wage workers but as the population became more and more employed by those big companies, and now also chinese companies wich created / supported by the chinese comunist party started to develop, all that made the wages rise as the demand for more workers also rised making the chinese more and more wealthier developing a ever increasing prosperous midle class. But China had already 3 major problems before the lockdowns.
1. A harsh demographic winter comming due to the 1 child policy for too long.
2. The comunist government is even worst then the fallen Soviet Union not only in corruption but the way it created incentive and then let it rise uncontrolably a build rush wich produced dozens of empty citties. In any other country with an open economy the house buble would have exploded more then 10 years ago much more violently then the US crisis that started in 2008.
3. Because of the point 2, the chinese economy and it's GDP is in reality much far less than the reality.
Of course they grew and developed, just not by close so much as the numbers they publish, because even if the numbers were true, in them is accounted an enormous amount of fake building and production created by the comunist party in part becouse of corruption but mainly in planned way to continue to create grouth. But until when can you grow without purpouse. At some point China will fall in 1 or 2 decades. In that fall the chinese comunist party will only be able to maintain control if it plays the foreigh enemy card to unite the nation, and the US is perfect for the role.
But the point is many countries are already benefecting from the chinese mistakes and antagonism with about all their neighbours and with the US and the west. All those countries acepting companies leaving China will develope.
Mexico can take advantage of it, or continue poor. Of course there will be other problems. But do you prefer the problems of being poor with less billionairs, or the problems of becoming a bit wealthier, knowing that of course there will be more billionairs?
I would like more billionairs in Portugal if that ment my life would also become better although i will never be one of them.
I used to work in one of the largest US manufacturing (automotive) companies. It had and has many production facilities in northern Mexico and also near CDMX. The policies required by US-based executives in those facilities used to annoy the Mexican management because the HR people from Gringolandia would tell the Mexican executives that they had to expand health care for women, stop refusing to hire people with HIV, and treat the workers more as resources to be developed and grown and less as disposible and temporary lowlifes. In other words, nothing like socialism, but certainly closer to US standards. The Mexican management thought that was ridiculous. You would do well to learn about US businesses and factories in Mexico in actual such facilities, not in the halls of leftist-dominated history departments.
Mexico GDP has grown by 50% in the last few decades and that is only starting to accelerate. Blaming the US for mexico problem is typical nonsense.
Even if you didn't say history major which screams left-wing, your points are biased and flawed. Did the offshoring in China not hugely benefit "multinational companies, rich industrialists and politicians"? Of course it did. Surely you cant be blind that it didn't hugely benefit most in china though with the biggest reduction in poverty ever.
13:10 You preset that as if it was a bad thing, as a Mexican who is very critical of our president, this move was one of the few decisions which I agree completely.
They will not understand that they cannot own other's natural resources.
Mexico is the logical choice your near shore source of expedited contract manufacturing and OEM manufacturing. They are picking up fast on the learning the skills curve.
Meanwhile, the whole Mercosur, Brazil included, is being left as the odd man out.
I foresee China increasing direct investments in Brazil in the near term, supplying the void being gradually left by the USA.
Chinese investments are like monopoly in that they are really worthless and just a game. Any country that is foolish enough to get involved in the Chinese financial system is stupid enough to not see what is coming.
Brazil is not an alternative to the USA theyre on completely different levels and their exports are the opposite of eachother USA ir more industrial and high tec and Brazil is mainly just agriculture and exporting raw materials
@@harwin391
That is a bunch of bunk.
The Brazilian Manufacturing is alive and kicking perhaps not up to par with North America, Asia, and Europe.
It suffered a setback in recent years on consumer items thanks to China's damage on many economies with cheap knock off imports. Same as happened to the USA's manufacturing sector.
" USA ir more industrial and high tec" boy, you need to work on your spelling. Some analyst you are.
Where we excel, exporting wise...
WEG Motors - We are net exporters of all kinds of Electrical Motors. Chances are, your EV has our electrical motors.
Embraer- Short of turbines, and avionics, our airplanes compete head to head against Bombardier, Comac, and Tupolev, scoring far better, based on secured fleet contracts overseas.
Termomecanica - Employee owned company, supply non ferrous metals in all forms ( sheets, bars, pipes ) to the world over, mostly on copper and brass.
BTW, The Licensee for Hyundai and Chery Motors is a Brazilian Conglomerate operating through royalty transfers.
Braskem - Plastics and Petrochemicals. We bought a plant in Mexico.
Companhia SiderĂșrgica Nacional - Steel makers with several plants scattered throughout the country.
Metalurgica Gerdau -Another steel maker
Suzano Papel e Celulose - World 's largest supplier of paper and pulp manufacturer, owning several plants and florest reserves for eucaliptus.
Aracruz Celulose - Another Pulp and Paper processor.
Klabin - Another Pulp and Paper processor. Wood products
Agrale -Makers of Agriculture equipment
Hering - Knitted and cotton apparel.
Dafra Motos - Motorcycles.
Del Vecchio - Musical Instruments.
Embraco - Refrigeration and Condensers
EMGEPRON - Naval shipbuilding, ngineering, munitions, part of Brazilian Navy
Iochpe-Maxion-Automotive wheels for OEMs and Aftermarket.
Marcopolo- Coach builders, specialized into Buses.
Natura - label owned Cosmetics, toiletry.
O BoticĂĄrio - label owned Cosmetics, toiletry.
SIATT- Defense Contractor, Missiles.
Taurus - Gun manufacturer, owns several awards in specialized publications in North America.
XMobots - Defense Contractor, unmanned systems
Your poorly edited remarks , some armchair analyst with no knowledge of facts on the ground floor. No credentials, and off the hip remarks, not to mention poor writing skills.
Harwin... What is that???? Venezuelan, Colombian or some Caribbean Republic?
Mercosur nacio muerto
@@harwin391 you dont understand Tony's point. USA were main invest in all Latam, now day after day lost position. Africa same...
Very good video, interesting.
As a Canadian I think all there work should be able to come here without tax involved and vice versa. But super power in the way
I hope so!
No chance. China and Russia will use the cartels to destabilize Mexico and wage hybrid war on the US. It has already started.
Better jobs in Mexico would reduce the lure of people joining the cartels. Either way, itâs a problem the Mexican government needs to solve because itâs a real security issue to do business in the country.
Given the Geopolitical tensions - I don't see why any company is not aggressively moving to other locations.
Vietnam is facing many companies moving from China
Not every company as the resources to do it but those that are will do it.
400 companies were accepted to move to Mexico, 44 of them this year
Although final assembly may be in Mexico, Iâd be surprised if components and subassemblies arenât made in China. The entire supply chain has to be inspected. Itâs to USA benefit to have Mexico become stronger economically. Same for having improved economies and jobs in order central and South America countries.
Most of the assembly that China does, has components from all over the world, but mostly US and EU. And what China does mostly *is* assembly. That's because it is still the most labor intense part of making most anything that is more complex. China does not _create_ that much as a sub-contractor. But yes, diversify, diversify, diversify, spread the wealth out amongst as many _friendly countries_ as can practically be done. Our best & greatest weapon against tyranny is prosperity.
@@michaelwittkopp3379 - Agree
@@williamlloyd3769
I also think that Mexico will be more creative from a business point of view than China has been.
I suspect you will start to see lots of Mexican branded products as well in the US. China is just an assembly manufacturing region. China cannot do any of the high tech production. People have been pointing out how China has made a big deal out of the fact that it just in the last decade figured out how to manufacture their own ball point pens.
â@@bighands69All China has done is stealing patents and technology.
â @@bighands69 lmao, china do be like. China may not be as economically powerful as they say. Some suspect that china lies about how much debt theyâre in which would be normal for china to do considering the false claims they made during Covid
Mexico has the potential to become a significant player in global manufacturing, much like China, thanks to its proximity to the United States, a large and skilled workforce, and an established manufacturing industry. However, several challenges must be addressed, such as improving infrastructure, reducing crime rates, and tackling corruption. Additionally, Mexico's success would depend on its ability to attract foreign investment and maintain stable trade relations with its North American neighbors. While Mexico has the potential to emerge as a manufacturing powerhouse, it may not entirely replace China but rather complement its role in the global supply chain. Thanks, VisualPolitik EN!
It shouldâve been like this since decades ago, invest in the American continent to bring more wealth and opportunities to all Americans , it wouldâve reduced the need to immigrate to the US in search for opportunities for a better life and saved all of the different headaches itâs caused the nation from spending billions to secure the border to hate and discrimination.
Long live the good people of the USA and the good people of Latin America.
Agreed, why help china when we have our own neighbors
I think you should take closer look at what AMLO is doin g with CFE and what is the purpose of nationalize lithium. Making this kind of moves benefits the people of Mexico. Also, an example of how Mexican economy is growing is Tesla opening a gigafactory in Mexico.
đ€Łđ€Ą
THIS. Let's not get taken advantage of again.
it's time for the aztec giant to wake up đČđœ
Energy is cheaper in Mexico than in the US as well as gasoline, and Mexico has a lot of hydroelectric plants as well as one of the biggest solar plants in the world !
I thought this is about economy but it always narrows down to whether you are ruthless or a pushover.The names given will differ depending on the geopolitics.
It is interesting to see that every week we get a new China LMAO.
Its a better option cuz itâs connected to both oceans (can ship abroad), doesnât have any really disputes other nations, can ship via train/ truckers, in case the ports closes up again or get overwhelmed, and has a fairly healthy demographic
Asia has really cheap labor but the South China region will more than likely face a war due to the disputes between those countries, and the China/ India issue will cause issues if/ when those 2 come into conflict
But it has a significant organized crime problem
We have also have trade agreements with the EU, and Japan, the cartel problem is not a stoper for commerce, it is for investment
@@tomlxyz True, its interesting case though because we may witness the If poverty causes crimes and if wealth reduces crimes, only time and opportunity may tell
Cartel crime may cause a lot of issues but if economics really does help then this may be reduced
And war is much more damaging to an economy than organized crime (in my opinion)
It would be interesting though nonetheless
@@NiL8Zombies Don't forget that the U.S. LOVES their synthetic drugs so I think as long as their neighbor is aching for their next fix, Mexico's cartels will be happy to comply so long as there's demand.
Meh, you're talking as if war is breaking out in Asia every day. Look again it's America who does the war and now it's in Europe, not Asia.
You mean: "Hecho en Mexico"
"land of tequilas, tacos, mariachi" followed by "respectful debate"" hilarious!!!
Completely glosses over the economic collapse of Mexico in the 90s when Mexicans became millionaires overnight.
And the agricultural reform that left rural Mexicans landless .
Also NAFTA severely harming rural Mexico when the US flooded the market with over abundant corn that made their number 1 crop not worth cultivating which caused the illegal immigration crisis to escalate to new heights
This is why i think this wont work. Theres a huge right wing sentiment in Mexico that is very anti american anti globalization anti nafta. This whole plan geopolitical specialist cooked up is going under the assumption that mexico agrees with it. What if it doesnt? What if it goes against it and decides to try brics instead? They never think about mexico simply saying not to this new plan they just assume Mexico will agree. What if we all collectively dont?
@@robertwest4157 I disagree since Mexico is in a center left wing phase currently..
a rather general and biased summary of recent history, containing some general facts but vague in content.
@@curtiswise8364 what did i say here that was false?
Yes it can and it should. I consider Mexico our brothers and sisters in the hemisphere. It's the key to both US and Mexico success.
Tesla just arrived to MĂ©xico 3 days ago and It's building the world's largest company, and investing 5 billion dollars, 5 BILLION DOLLARS!!!!
That would be a nice change seeing Americans migrating to Mexico for jobs.
As to Foxconn will actually gives the finger to Wisconsin and say F Wisconsin, but gives the green light on Mexico.
Most likely you might see Tim Cook in Mexico and to say Foxconn will favor Mexico instead of Wisconsin; that means that future iPhones will be made in Mexico.
Get ready to see this:
Designed by Apple in California Assembled in Mexico
I don't think Mexico will like Foxconn.
Even Chinese people don't like working at Foxconn
I love your work! Do a video on Alaska. How itâs been stagnant for decades
You guys have HAARP.
12:33 How is it that when the EU and the US want to end their dependency on foreign gas companies (mainly Russian) is a good thing but when Mexico does the same it's "autocracy"?
As a Mexican, let me tell you that you got a few things wrong. When it comes to energy policy, it is a national security that the Government is in control of its energy consumption, especially if the US is the main provider. Just look at what is happening to Germany with its energy dependency on Russian oil and natural gas. So, I think it is very important that the Mexican Government controls the energy prices, in specific gasoline and electricity. That can reduce inflation on the national level.
Also, foreign companies can invest in other industries where there are little restrictions or competencies. Lithium is the new oil, and if foreign companies take their hands on this precious mineral, that wealth will not stay in Mexico. So I think it is important that the government nationalized it because all the income from exporting or refining Li will go to the budget. In other words, more money for education, pensions, healthcare, and scholarships for students.
Mexico has a history of being taken advantage of, millions of tons of gold and silver stolen from Mexico, where is that wealth now? Even now foreign mining companies are reaping profits from the mines in Mexico. Mexico can and will be self sufficient with or without the USA. So the USA better figure out better relations with Mexico and get on the gravy train.
@Curtis Wise I agree Curtis. Foreign mining companies pay pennies for every ton of minerals extracted from Mexican soil.
So I hope with Lithium being nationalized, MĂ©xico can take advantage of its added value that way it can go to its budget and spend it on infrastructure, education, health, and others.
The geopolitical strategist Peter Zeihan has been preaching this.
Charlatan is Peter Zeihan
Mexico is an emerging market economy so there is excellent potential to compete with China in the long run. However, Grant should really brush his damn teeth.
True af. His teeth makes me swtich tabs while listening the voice.
ACTUALLY, the Mexican miracle begun in 1938. Ended in 1981. From 1982 to 2018 we applied Reagonomics with disastrous consequences.
State own is a good thing for Mexico, specifically in oil and that lithium. Last presidency basically gave away oil fields for nothing to foreign companies
well I go visit Family in chihuahua and Monterey and I definitely see massive complex been build I even heard theirs a town near by that all its signs are in Spanish and Korean because thats where all the Korean companies are setting up and a lot of the executives of these companies have fallen in love with Mexico that they moving the whole family to Mexico so it just became like a lil Korea haha idk just fine that crazy
FALSEÂĄ As a mwxican economist, IÂŽm not a AMLO supporter but deffenitly He and prime minister Ebrard are taking the right choices to take advantage of this nearshoring situation, we are going to produce semi.conductors next year.
Let's pray for the success of Mexico, not just for its people and country but for its overall economic success.Any country that can take power away from China is a good country.
Having the people whit the knowledge and the necessary machinery you can do what ever you want here or any part of the world!
Peter Zeihan really picks at this to itâs core. I recommend listening to him if youâre into geopolitics/economics
Exactly and thank you.
I don't trust a man with a ponytail sir
â@@ernestkhalimov1007haha
Zeihan is _kind_ of bullish on Mexico, now I see why. Mexico has been here before, which you don't mention. There's a book _Invisible China_ that explains what happened the last time Mexico was in this position. Decades ago Mexico was the low cost producer and was displaced by China.
Excellent video overall, voted up. Edit: Zeihan says China's use by date is 2030, he _might_ be off on the timing, but it's a matter of _when,_ not _if._
Peter Zeihan following the footsteps of Gordon Chang.
@@peekaboopeekaboo1165 What's inaccurate was the _when_, not the _if_. The CPC lately has only accelerated instead of reversed its self-made fundamental problems of aging, debt, and pollution. I've seen firsthand the collapse of optimism in China especially among the younger folks -- there's a real danger in the coming years of China stagnating and getting overtaken from collective inaction and anomie, which will only raise discomforting questions about how the people actually benefit from the Party.
@@doujinflip PRC economy is doing well.
@@doujinflip It's true, they keep doubling down on their errors, fun to watch.
Going thru Juarez, every other person works in a maquila, a factory, even a big section of the city is just factory after factory after factory and elon musk has decided to build a mega factory in sonora. H esaid Juarez was good for factory however the infrastructure has to improve, which i agree on roads etc.
You did well until the end, you missed the fact that AMLO puts his people first!!
With Exemption of India no other country will be able to replace China. China has the most developed economy and infrastructure. China has the largest local market for any industry to start with.
... why the hell aren't we taking more advantage of this? Probably an unpopular opinion, but I think legalizing and regulating all drugs (cocaine, heroin, etc) will decapitate the cartels or at the very least force them to go legit where they can't use violence to achieve their goals. After that, Mexico would be awesome economically and it was also help slow illegal immigration because Mexico will be safer and more prosperous and that will benefit all of North America.
I guess he is suggesting that Mexico should just let all the private sector do whatever they want with lithium.
This.
My electric bill went from 45 dollars a month in winter to 11 dollars. You slipped a few lĂes in there.
I remember driving by the Chrysler Neon plant in Belvidere, Illinois. The lot was packed with Neons for months. What ended up happening was the motor building and assembly was done in Mexico. When people drove their Neons, a lot of the motors seized up. The problem was the guy who tightened the main bearing bolts on the crankshaft thought they could use a bit more torque. All of the motors had to be rebuilt.
a technical error?
@@marioruiz-bf3ie No. A human error.
@@kuei1215 ok
It Was Just a shitty car thats it
@@aadrian19 It was a Dodge. That goes without saying.
The problem is Mexico is pretty decentralized with a weak federal government. While yes government does tend to get in the way of productivity and economic advancement, they play a strong role in the initial development of a country making sure that profits are reinvested back into the economy rather than to wealthy investors. China, the Soviet Union, Japan, South Korea all initially developed at lightning pace because large state owned companies and/or state planning made the basic investments in infrastructure, education, sanitation to make a productive workforce. Now this only works up to a point as going past that stage into an advanced economy requires flexibility of free thinking and profit incentives. The Soviet Union couldn't get past this part and China is about at that point they will see growth stall. But the point is without a strong central force to make sure these initial investments are made, most of the growth gets lost in profit leaving the country and not reinvested back into the economy.
Mexico and india are the hot economies today before china
What stocks to invest tho
Love or hate him, Trump had the right idea in not putting up with the CCP's BS.
No one does he was just reckless about it
Viva la Mexico!!!
As a mexican, it's a bit worrying to find out my country's wages are lowers than china's
Most Mexicans, like my self, agree with AMLO on not letting foreign companies own and exploit our natural resources, for example oil and lithium... So that might be a problem from your perspective but not ours! This has already proven beneficial for our economy, the proof is that we are energy independent we are not subject to the greed of U.S. companies and have a strong currency. These US companies do not ever respect the rights of their own citizens if it comes in the way of profit, for example PG&E, the train reck in Ohio are two examples that come to mind.
Decade of the made in Mexico yet again? Wasn't too long ago everything was labeled such. At least in the US.
Then the left took over which scared away all the money.
Oh please, the left is always picking up the pieces of the economy left over from disastrous policies and continued tax cuts when the right in charge.
@@andrea6637 Oh please, its the right that has to clean up the finances after the left goes on wild spending sprees. The worst 10 cities, capitals, states, ... are all long term democrat states.
According to the Dutch government there are lot of opportunities for Dutch companies in Mexico. The number of Dutch businesses active in the Mexican market is growing. For example advanced technology in agriculture is one of the markets that are mentioned, and water management. Hopefully they are right, better life conditions are the best preventions against crime.
I hope this deacde be Mexico , thanks Nearshoring.
I am so happy for Mexico and her people... luv from India...
đČđœâ€đźđł
ÂĄViva Tech India! From Mexico.
Hi! You should put the option of Spanish subtitles so more Mexicans can watch this video, because yo have very valid points that a lot of people don't see because they are in love with AMLO because he is a populist, but affects very much our economy because of his way of thinking. Saludos!
One might come away with the notion that foreign investors are disinclined to invest money in countries where the government is inclined to seize those investments.
Good morning, I think that besides Mexico many Latin American countries may be suitable for American low cost manufacturing. They speak Spanish, a language easy to learn, many of these nations have a diaspora in America, providing a technical managerial team to manage these American Latin American operations and inspite the bad historical relationship America or El Gringo is often admired by the Latins
Many of these latin american countries have close ties to china and russia. Mexico is one of the very few which has such close ties to the US, culturally, historically, geographically, ideology wise and most importantly, economically.
Gosh thiago is so introvert indeed. Must be hard to merge two different worlds.
14:41 Well, just like with china, it depends if the U.S. allows it.
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While his data might be true he's not taking into account a social environmental cost of some of the government's actions in Mexico. I'm not a professional when it comes to understanding this topic but a general assumption would be that looking purely at the economic cost and benefit of everything would also include environmental and social cost as well as cultural viewpoints. On the one hand private industry can play a major role in lowering price provided that it's well regulated and that the people that the company serves demand a ethical company.
AMLO brought to the country with his economic policies a better distribution of wealth. The foreign companies that arrived only contributed very low salaries and nothing else, how is it possible that General Motor paid a worker 5 times more in the USA, and a few kilometers to the south, the same company paid 5 times less to a Mexican worker? That is what AMLO tries to correct and protect from abusive and advantageous foreign companies that, under the pretext of investing and generating jobs, established themselves in Mexico without contributing to the development of the country.