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Mexico has surpassed China as America's top source of official imports, indicating a shift in trade flows due to tensions between the US and China. This comes as foreign companies are turning to Mexico as a viable alternative to China for manufacturing and trade.
New data released on Wednesday showed that Mexico outpaced China to become America's top source of official imports for the first time in 20 years a significant shift that highlights how increased tensions between Washington and Beijing are altering trade flows.
Marco Villarreal, former director general for Caterpillar in Mexico, sees the stars aligning for Mexico as a manufacturing destination. He believes that foreign companies, particularly those wanting to sell within North America, view Mexico as an attractive alternative to China. This is partly due to simmering trade tensions between the US and China, as well as other factors.
Mr. Villarreal said foreign companies, particularly those seeking to sell within North America, saw Mexico as a viable alternative to China for several reasons, including the simmering trade tensions between the United States and China.