CHONGQING — More and more Mexican companies are stepping up business and trade relations with western China as the region has become an opening frontier and is poised to share more development opportunities with other countries. ‘other countries.
Twenty-four Mexican companies will attend the 4th West China International Trade and Investment Fair (WCIFIT), which will be held from Thursday to Sunday in the municipality of Chongqing.
“Mexico is China’s second largest trading partner in Latin America and the two countries enjoy good economic relations,” said Julio Cesar Cruz Moreno, president of the Chongqing branch of the Mexican Chamber of Commerce in China (MEXCHAM).
In 2021, bilateral trade volume between China and Mexico hit a new high of $86.6 billion, a year-on-year increase of 41.9%.
“However, many companies are more familiar with Beijing and Shanghai. We want to take this opportunity to build a bridge between Mexican companies and Chongqing or the whole of western China,” Moreno added.
Nemak, one of the world’s leading lightweight automotive component suppliers, has had remarkable development in Chongqing over the past 10 years.
“With a strong infrastructure and supply chain for the automotive industry, Chongqing has attracted many automotive companies to locate here,” said Li Zhi, chief operating officer of Nemak China.
The advantage of having an industrial cluster in Chongqing has also helped the Mexican company withstand the impacts of the COVID-19 epidemic and maintain steady growth, Li added.
In addition, the strong development of China’s New Energy Vehicle (NEV) industry has given companies like Nemak further growth momentum.
“Many local NEV companies want to work with us. This will not only spur us to continuously invest in new technologies, but also point to more business opportunities in western China,” Li said.
In 2021, NEV sales in China jumped around 160% to 3.52 million units. In Chongqing, NEV production reached 150,000 units, a year-on-year increase of 252%.
“We look forward to finding more opportunities at WCIFIT and charting a brighter future for our business in western China,” Li said.
Italika, the largest motorcycle company in Mexico with a market share of nearly 70%, has also benefited from its business ties with western China. Most of the company’s products were exported from Chongqing to Mexico.
“Last year we shipped more than 10,000 containers of motorcycles to Mexico, compared to just 800 in 2008,” said Jaziel Romero Rodríguez, logistics manager for Italika’s Chongqing office.
“More and more Mexicans have embraced ‘made in Chongqing’ motorcycles,” Rodríguez said, noting that a growing number of Mexican companies have shown interest in doing business with local manufacturers in Chongqing.
In 2021, China exported 1.42 million motorcycles to Mexico, the world’s largest market for Chinese motorcycles. The export volume reached 4.7 billion yuan (about 694 million US dollars).
“Chongqing is the manufacturing base for automobiles and motorcycles, but it’s more than that,” Moreno said. “We sincerely hope that more companies can come to western China and find a new space for China-Mexico economic and trade cooperation.”