Taps Coogan – September 12th, 2023
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The latest installment of in our exploration of ‘Post-Peak China‘ comes from Bank of America via Isabelnet and highlights the fact Mexico has officially overtaken China as the largest source of US imports for the first time in 20 years:
🇺🇸 Imports
— ISABELNET (@ISABELNET_SA) September 9, 2023
For the first time since 2003, the United States currently imports more goods from Mexico than from China. Will this trend continue?
👉 https://t.co/blMxcoFA78
h/t @BofAML #markets #China #imports#import #Mexico #economics #economy #investing pic.twitter.com/tp91vN5rQv
![](https://thesoundingline.com/wp-content/uploads/2023/09/us-imports-china-vs-mexico-since-1994-1024x817.jpg)
As a reminder, nearly every category of China’s exports (to any country) other than auto related industries are in decline this year, as we noted here.
![](https://thesoundingline.com/wp-content/uploads/2023/08/china-export-changes.jpg)
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Most likely misleading, Is Mexico just a middle man now? I just looked it up and Mexico is importing $100B from China, a new record. And then I found this but it’s the NY times so it’s paywalled.
Why Chinese Companies Are Investing Billions in MexicoFeb 3, 2023Tracing a path forged by Japanese and South Korean companies, Chinese firms are establishing factories that allow them to label their goods “Made in Mexico,” then trucking their products into the.
I’m sure you’re right that re-exporting is happening, but as the second chart highlights, I don’t think it changes the reality that China is losing export market share and $s. Plus Mexican exports to the US haven’t risen by enough to capture the decline in Chinese exports