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China Southern bets on 'nearshoring' and opens its first direct flight to Mexico

2024-03-13T05:15:05.204Z

Highlights: China's largest airline hopes to fly to the Mexican capital non-stop starting in April. The trip would be the longest flight from China and will become one of the longest regular routes on the planet. Mexico has emerged as a buffer to trade clashes between the United States and China on several fronts. China reduced its exports to the U.S. by 20% last year, dethroning Mexico as its main trading partner. But Chinese companies also want to relocate to continue having access to the largest market in the world.


China's largest airline hopes to fly to the Mexican capital non-stop starting in April, according to information from the Bloomberg agency.


China's largest airline hopes to launch its first direct flight to Mexico in mid-April, a bet that business between the Asian giant and Latin America's second economy will intensify.

According to the

Bloomberg

agency , a spokesperson for China Southern reported that the airline will offer non-stop service from Shenzhen to Mexico City with flights twice a week.

The trip would be the longest flight from China,

Bloomberg

assured , and will become one of the longest regular routes on the planet.

Mexico has emerged as a buffer to trade clashes between the United States and China on several fronts.

As a result of the tariffs and restrictions imposed by the White House, China reduced its exports to the United States by 20% last year, dethroning Mexico as its main trading partner.

In addition, Mexico is promoted as a potential destination for companies seeking to leave China and locate in “allied” countries of the United States, a relocation trend known as

nearshoring

.

But Chinese companies also want to relocate to continue having access to the largest market in the world.

The presence of Chinese electric car manufacturers in Mexico has bothered legislators and politicians in the United States who accuse them of triangulation to evade the restrictions imposed by the United States. On the other hand, the White House Trade Representative, Katherine Tai, has raised the tensions with Mexico by ensuring that the country is exporting aluminum and steel from “third countries” that are not part of the free trade agreement, the USMCA.

Mexico has responded directly that it is not exporting metals of Chinese origin.

The BYD EV Dolphin Mini announces the launch of the low-cost electric vehicle in Mexico City, on February 28, 2024.Toya Sarno Jordan (Reuters)

In December, the Secretary of the Treasury Department in the United States, Janet Yellen, visited Mexico with a clear message: direct foreign investment in Mexico must not compromise the national security of the United States. “Our interest is in ensuring that our supply chain is not concentrated in one place, we want to see geographical diversification so that this supply chain becomes more resilient,” he declared.

The China Southern flight will connect the Mexican capital with Shenzhen, an industrial city and headquarters of the world's largest electric vehicle manufacturer, BYD.

The company announced in February that it would open an assembly plant in Mexico, although it has not reported in which city.

Automotive exports are an important source of foreign currency for Mexico.

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Source: elparis

All news articles on 2024-03-13

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