Backdoor to the US- Chinese car makers could use Mexico’s advantage on autos to break into the US ma.docVIP

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2017-08-23 发布于福建
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Backdoor to the US- Chinese car makers could use Mexico’s advantage on autos to break into the US ma.doc

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Backdoor to the US- Chinese car makers could use Mexico’s advantage on autos to break into the US ma

Backdoor to the US: Chinese car makers could use Mexico?s advantage on autos to break into the US ma Following its entry to the WTO, China laid waste to entire industries in Mexico, but one bright spot remained: the automotive sector. Due largely to the North American Free Trade Agreement(NAFTA), Mexico remains a crucial part of the US automotive supply chain, exporting 80% of the auto parts it produces to the US. China has not been in a position to compete in the US auto market because thus far it has not had a surplus of cars or parts available for export, said Enrique Dussel Peters, director of the Center for Chinese-Mexican Studies at the National Autonomous University of Mexico (UNAM). Domestic consumers are already buying every car China produces, and the remaining 5% of domestic demand is filled by imports. But in two or three years, when supply is expected to outstrip domestic demand, China is likely to go after global market share. Secondary markets will probably come first – such as Russia, Africa and Latin America – followed by more developed markets, including Western Europe and the US. Mi casa es su casa Mexico has succeeded in the US market in part because it makes auto parts and assembles cars rather than selling brands of its own, Peters said. Mexican manufacturing is not seen as a challenge to the American auto industry, which the US government has gone out of its way to defend, most recently through the bailout of GM and Chrysler following the financial crisis. But the US government will probably take a much different view of China, where domestic brands account for some 40% of cars produced. “If you want to engage in a massive competition between China and the United States in the US market –and this will happen, I?m sure this will happen – [it] would have huge political repercussions,” Peters said. Politics aside, China would be at a disadvantage due to higher transport costs for trans-Pacific shipping and higher tariffs th