Mexican businesses see China as driving force for growth

Mexican business groups and enterprises are expressing high expectations for trade and investment in China and believe that bilateral business relations will further improve, despite the ongoing epidemic.

The Mexican Chamber of Commerce in China said on Wednesday that a survey conducted from late June to early July found that companies on both sides have faith in business and trade between the two countries.

The majority of the respondents are positive that the future of China-Mexico business and trade ties will improve, according to the survey.

Meanwhile, the participating companies on both sides wish to cut the import taxes between the two countries and some other restrictions on trade, and they have called for a tailor-made strategy for attracting foreign direct investment from China. There have also been calls for more mechanisms to take advantage of cross-border e-commerce through Chinese trading platforms.

The survey offers positive signs that the Chinese market can be a driving force for overseas businesses in the fallout from the epidemic.

Victor Cadena, vice president of the Mexican Chamber of Commerce in China, told the Global Times on Wednesday that although China’s first quarter economic growth was minus 6.8 percent, it was 3.2 percent in the second quarter.

“The recovery is already underway and that is positive not only for China but also for all trading partners including Mexico, which expect GDP contractions of minus 10 percent in 2020," Cadena said.

Despite the outbreak, Bimbo China has managed to resume business operation and achieved full resumption by the end of April in a bid to meet the growing demand for quality bread in China.

Currently, the business value of Bimbo China and Bimbo Quick Service Restaurant, a food service business unit of Grupo Bimbo, are about $200 million and $100 million respectively, according to Bimbo China.

“We are fully confident in the Chinese economy and the market and will further deepen our investment and expansion in China," Scott Jin, Bimbo China marketing director, told the Global Times on Wednesday.

Bimbo China’s overall sales in the second half of the year are expected to grow by 16 percent compared with the first half of the year, thanks to the fast resumption of the Chinese market after the effective containment of the outbreak, said Jin.

There are over 150 Mexican companies that are currently doing businesses in China. For the second half of the year, the existing companies are expected to increase their operations, which goes along with the expected recovery of 20-30 percent for trade between China and Mexico in the second half compared to the first, according to the chamber.

“Given China’s population, domestic market consumption, political stability, and business ecosystems, I don’t expect companies will move out their supply chains in the short term," Cadena said in a previous interview.

However, issues like the global economic crisis, disrupted travel and visa restrictions worldwide are among the main challenges for Chinese and Mexican businesses and trade, the survey said.

“China is already in the recovery stage while in Mexico some sectors still haven’t resumed activities," said Cadena.

The global economy is expected to shrink sharply this year, with more than 90 percent of emerging markets and developing economies experiencing a drop in per capita income due to the epidemic. Meanwhile, China’s economic growth will slow to 1.6 percent this year but is expected to rebound to 7.9 per cent in 2021, according to the World Bank on Tuesday.

Source: Global timeshttp://enapp.globaltimes.cn/?from=singlemessage#/article/1196114

MEXCHAM continues building bridges between China and Mexico.