# Mexico: China’s unlikely challenger



## tepetapan (Sep 30, 2010)

here is a good read I found today. Mexico, as you know,is the world´s largest exporter of autos but that is just the beginning.
there are some links worth following in the article.
Mexico: China’s unlikely challenger - FT.com


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## RPBHaas (Dec 21, 2011)

tepetapan said:


> here is a good read I found today. Mexico, as you know,is the world´s largest exporter of autos but that is just the beginning.
> there are some links worth following in the article.
> Mexico: China’s unlikely challenger - FT.com


According to the OICA, Mexico is the eleventh largest producer of automobiles, the 5th largest producer of commercial vehicles and the 8th largest producer overall.
Mexico is the world's largest producer of silver by volume and in the top 5 for iron ore, cadmium, molybdenum, zinc and flourspar.


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## conklinwh (Dec 19, 2009)

tepetapan said:


> here is a good read I found today. Mexico, as you know,is the world´s largest exporter of autos but that is just the beginning.
> there are some links worth following in the article.
> Mexico: China’s unlikely challenger - FT.com


Sort of offended that you would send people to a site where have to sign-up to read article without telling people upfront.
Hopefully a good article!


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## Isla Verde (Oct 19, 2011)

conklinwh said:


> Sort of offended that you would send people to a site where have to sign-up to read article without telling people upfront.
> Hopefully a good article!


I wasn't offended, but I was slightly annoyed and ended up not reading the article.


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## TundraGreen (Jul 15, 2010)

Isla Verde said:


> I wasn't offended, but I was slightly annoyed and ended up not reading the article.


It is easy to forget that a login is required if you have set your browser to login automatically. The poster of the link probably didn't remember it was restricted.


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## cuylers5746 (Mar 19, 2012)

*Mexico not China Economic Mfg. Powerhouse*



tepetapan said:


> here is a good read I found today. Mexico, as you know,is the world´s largest exporter of autos but that is just the beginning.
> there are some links worth following in the article.
> Mexico: China’s unlikely challenger - FT.com


Hi Tepetapan;

Sorry, I don't ever sign up for any email news letters just to read an article. I always trash those attempts. They want to advertise their site, I'll read the article, but nothing more. To heck with that.

But that said, here's a few comments on the subject that probably most Expat's are not aware of and could lead to maybe some life style changes to your retirement if you live in an affected city and on the flip side some investment opportunities.

I write a little Investment Newletter to friends, family keeping them abreast on what's really happening in the Wonderful World of International Finances. I call it Jungle Investments.

We'll here's a couple of high lights of what is coming our way to ole Mexico;

1.) *Globalization for most extensive purposes (excepting small packages, some services) is DEAD. DOA! * When China comes roaring back from it's current 11 month slide in Manufacturing - the bulk of it will be split for exports, and for supplying their quickly growing consumer class. WHY? Cost of Oil/Transportation. At Oil around $100.00 per barrel and will be going quite a bit higher before it tops out probably some time next year. 

Well, it just kills the Chinese/India Manufacturing advantage. When factories there have to pay a lot higher price for their raw materials expensively shipped now at this price of oil from Australia, South Amercia, etc. And, then they paying higher prices for energy at their factories. Then, there is the price of labor that has been inflating quite a bit this last couple of years. Yes, I know it's a pittance of USA Labor rates, but it is a factor as it increases. Then you have to pay to ship the finished goods to the USA and Europe. The cost of shipping has darn near tripled with the present cost of oil. 

2.) *Regionalization in the Future*. Pres. Bush, Fox and Prime Minister of Canada saw this all coming and formed the North American Union in 2004 at a joint meeting in New Orleans. That's why Pres. Bush had signed over 80+ Free Trade Agreement pacs, and Pres. Fox and Calderon have now signed over 42 Free Trade Agreements. Manufacture in the North American Free Trade Union ( Canada, USA, Mexico) and ship to any of those countries without duties. It's like a free Tax Pass for any company starting up a seperate Division of their parent company in a Factory in Mexico and getting most of the advantages tax wise of NAFTA and the new Union. Even if they were not part of the original signing of those agreements. Manufacture close to your two larges markets USA and Canada, and get free ride on NAFTA and NAU Trade Agreements supplying Latin America, South America, USA and European markets.

Immediate Results of this Sea Change in International Finances?

1.) Chinese companies are beating down Mexico's doors to put in new factories. There are 220
Chinese seperate companies wanting to construct factories here now in Mexico. Get in or 
get left out? What absolutely amazes me is they're not waiting for the Drug Cartel Wars to be
over? That with some of the Cartels propensity to extort, kidnap, etc. makes that early move
sound risky to me? I guess when the tide changes, you'd better go in with it or loose out?
2.) Levino Computers is spending $40+ Million on putting in a new plant here in Mexico.
3.) Three huge new Aircraft Plants starting the ground breaking for new factories in Queretaro.
We're talking Boeing, Bell Helicopter and some Canadian Aircraft Mfg. company Having had 
worked in Aerospace for over 10 years, I can pretty much guess that means over 10,000 new 
jobs there, and that's without thousands more working for many, many smaller subcontractors 
that will spring up to supply parts for those main 3 companies.
4.) Mexico has now become the no. 1 manufacturer of atuomobiles.

So, that makes me deduce that the infracsture companies like CEMEX will be picking up business regardless to the loss in business from the long slide in China and continual slide in the Japanese economies. 
[B
Deduction;[/B] Mexico's start is about to shine, and maybe it will outshine USA and Canada in this new influx of manufacturers into the North American Union?

This might effect your life style and amount of traffic you put up with if any of this future NAU effects your town?

I'd be interested in other's thoughts on this, and rather this has already effected their retirement life style so far in Mexico.

Cuyler


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## tepetapan (Sep 30, 2010)

For those offended or what ever, the site gives you something like 6 reads free a month. There did not seem to be any advertising blitz so I figure they just need to pay for the work somehow. The site is very informative and you might find yourself returning until, ooops, the 6 free are finished until next month.
I too am almost always leary of signing up for these sites but in this case they actually come across with the goods. I used my 6 free in 3 days and if I had money I would gladly sign up for the basic subscription.


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