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Mexico already hooked to US manufacture since NAFTA which is even older than Chinese membership in WTO. Still havent show satisfactory results.
by eunos 4y ago
Mexico already hooked to US manufacture since NAFTA which is even older than Chinese membership in WTO. Still havent show satisfactory results.
- alephnerd 4y agoBecause Wages. Median household disposable income in Mexico is around $9800 [0] Median household disposable income in China is around $5,000 [1] In reality, in Prefectures like Guangzhou, Shanghai, Beijing, and Tianjin you are seeing median household disposable incomes that are comparable to Mexico [2], hence why high value manufacturing is returning to MX, because Chinese high value manufacturers can't compete within the US with MX when factoring shipping costs. Within Asia, Chinese high value manufacturing is still competitive, but is returning to Thailand and Malaysia for the same reason (all those consumer electronics factories in Guangzhou were started and managed by Malaysian Chinese in the 80s) [0] - https://www.inegi.org.mx/temas/ingresoshog/ https://www.inegi.org.mx/temas/ingresoshog/ [1] - http://www.stats.gov.cn/english/PressRelease/202201/t20220118_1826649.html http://www.stats.gov.cn/english/PressRelease/202201/t2022011... [2] - http://www.stats.gov.cn/english/PressRelease/202202/t20220227_1827963.html http://www.stats.gov.cn/english/PressRelease/202202/t2022022...