Page 14 - ENGLISH MONTT GROUP, MAYO 2024

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MExICO
tHe Star of
reGionaL nearSHorinG
developed coUntries are relocating their companies from china and moving them to the rest of asia and mexico, dUe to their proximity to the United states.
even chinese organizations have already settled in that coUntry to export to north america .
VIDEO: REPORT ON MEXICO
Indonesia, Vietnam, Morocco, Poland, and Mexico are the five countries in the world that are leading the so-called relocation or nearshoring, that is, a phenomenon that consists of moving factories from the country of origin or where they were installed for a long time to one closer and more stable location, in which the conditions are more adequate, from workers’ salaries to electricity and fuels, inputs and, especially, taxes.
Of all these territories, Mexico is where the so-called greenfield investment—a form of foreign direct investment through which a company builds its facilities for an industry from scratch—is the largest, reaching US$41 billion in 2022, the highest figure of the five countries mentioned
above and which represented an increase of almost 50 percent since 2017.
What’s more, this new situation has recently positioned the country among the four nations with the biggest growth in Foreign Direct Investment (FDI), only below Germany and Canada.
This is a new phenomenon in international trade, which is transforming the global manufacturing scene, characterized by the fact that an increasing number of supply chains and productive organizations of rich countries are withdrawing from China and relocating in the rest of Asia and in some Latin American nations, mainly in Mexico. Several other companies are beginning to return directly to their countries of origin,
as happened in the last three years with 153 entities that returned to the United States, and another 208 that returned to the European Union.
Since 2019, half of foreign bond investments of between $250 billion and $300 billion have emigrated from China and U.S. private equity and venture capital investments in the Asian giant have fallen by more than 50 percent. percent, according to a JP Morgan report.
China still Matters
Foreign direct investment in China in 2023 hit a 25- year low of US$4.9 billion, down 87 percent year-on- year, according to official Chinese data. Investigation of Bloomberg and fDi Markets on new investment projects,—
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