China calls for better bilateral ties with Mexico
cctv.com 12-13-2003 12:42
Among the world's top 10 trading nations are two developing countries - China and Mexico. Trade relations between these two keen competitors have not been easy. Chinese Premier Wen Jiabao's visit to Mexico will call for more understanding and cooperation in trade between the two sides.
Anti-dumping duties, imposed by Mexico's government on shoes made in China, are over 1,100 percent. And there are around 1,400 other products subjected to similar punitive taxes. These huge duties are likely to continue for another four years according to the WTO agreement between China and Mexico. Experts say, however, these duties do little to further bilateral trade between the two developing countries and the two sides should try to reach a better understanding.
"Mexico is complaining China's economy is not a total market economy...We are not dumping goods," said Jiang Shixue, deputy director of Institute of Latin American Studies of Chinese Academy of Social Sciences.
Despite its large deficit in bilateral trade with China, Mexico seems more worried about China's potential to bite into the American market. The two developing countries share many similarities, such as depending on low-end manufacturing, labor-intensive industry and foreign investment from developed countries. As China grows, it is increasingly being considered the world's manufacturing base and, with its cost-effective environment, the place to invest. Experts say, however, there is no need for Mexico to be overly worried as trade is not a zero-sum game.
This point of view is echoed by the Mexican government. Mexican business officials say it's best to cooperate with one another by taking advantages of merits on both sides.
Experts say the geographic advantage Mexico is crucial to its long-term competitiveness in the international market. What's more, they say Mexico's strategy for a faster move from low to high-tech areas of industry is a wise decision. But the question remains: how can the two developing countries best cooperate to gain from one another?
Editor:Han Source:CCTV.com
