Illustration: Xia Qing/GT

For China and Mexico - two developing countries with high complementarity - effective economic and trade cooperation is in the interests of both countries and their companies.

Although the Wall Street Journal (WSJ) reported on Tuesday that Mexico wants to reduce its dependence on imports from China and is asking some of the world's biggest manufacturers and tech firms operating in the country to identify Chinese products and parts that could be made locally, there is not enough evidence to show it represents the prevailing view among most Mexican officials.

For the past decade or so, some Western media outlets have selected, over-interpreted or distorted facts in their news reports in an attempt to undermine the mutually beneficial economic cooperation between China and the North American industrial chain. But in reality, bilateral cooperation has been constantly strengthening. This situation fully demonstrates that, in the present era of globalization, economic "decoupling" is impossible.

Obviously, there has been a rise in trade protectionism in the US. Mexico should have perhaps felt pressure from Washington to change its trade policy direction, and that pressure is likely to continue. However, one thing is clear: Protectionism will not be able to build a protective wall.

It's understandable that Mexico wants to boost its economy and shore up its manufacturing sector. In this process, China is a friend and partner. China has been Mexico's second-largest trading partner for many years, while Mexico maintains its position as China's second-largest trading partner in Latin America.

Total trade between China and Mexico hit a new high in 2023, breaking the $100 billion mark for the first time, an increase of 6.03 percent year-on-year. China's new direct investment in Mexico stood at $151 million in 2023, with cumulative investment totaling $2.452 billion. The figures reflect the vitality and potential of economic cooperation between the two countries.

As China's economy grows, Chinese companies' enthusiasm for outward investment continues to rise, and the scale of investment continues to rank among the top in the world. In 2023, China's outward direct investment reached $177.29 billion, an increase of 8.7 percent over the previous year, accounting for 11.4 percent of the global total and ranking among the top three in the world for a 12th consecutive year.

Against this backdrop, more Chinese investors are turning their eyes to Mexico. Japanese media outlet Nikkei Asia reported in February, citing a 2022 survey by the Japan External Trade Organization (JETRO), that the average monthly salary was $480 in the Mexican state of Queretaro, the highest in the country, which was only about one-eighth of that of the US city of Detroit. Low labor costs, together with other advantages, make Mexico one of the ideal investment destinations for Chinese companies.

Chinese investment will make positive contributions to the development of Mexico's manufacturing industry. Efforts need to be made to tap the potential of cooperation in the fields of trade and investment, rather than going in the opposite direction. It would be beneficial to Mexico if it avoids following the trade protectionism and "decoupling" moves taken by Washington, which will exert a negative impact far and wide on the development of Mexico's own manufacturing industry.

"Decoupling" from China would serve only the interests of some American politicians but will disrupt the regional and global industrial chains. In the face of such tactics, falling into Washington's narrative trap isn't in line with the interests of other countries, including Mexico.

Mexico is a major country in Latin America and an important emerging market. Chinese Foreign Ministry spokesperson Mao Ning said at a regular press conference in June that China always views its relations with Mexico from a strategic height and long-term perspective. 

"We stand ready to work with the new government of Mexico to seek closer synergy between our development strategies, enrich the China-Mexico comprehensive strategic partnership and bring bilateral relations to a new level," Mao said. 

China's prosperous trade with Mexico is the natural result of the economic complementarity of the two countries. To exploit this complementarity, Mexico needs to avoid being kidnapped by the US "decoupling" push, as an independent economic policy would not only underscore Mexico's independent position on the international stage but also bring more opportunities for Mexico in economic development and international cooperation.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn