U.S. dumps China for Mexico

[Guest Tony n Terrific]

Mexico has become much more attractive, even Chinese companies are moving to the country to take advantage of the North American Free Trade Agreement (NAFTA) commercial and fiscal benefits and export to the United States, said different experts in foreign trade.

"Compared to China and other manufacturing hubs, Mexico offers better access to North American markets with a shorter, faster and cheaper transportation route to move products and supplies by truck, rather than over thousands of miles by ship, rail, and truck combined," said Daniel Silva of the Mission Economic Development Authority.

 

 

 

http://money.cnn.com/2009/11/03/news/inter...sion=2009110311

[Stepbrow]

I question the validity of this article. First, many companies didn't just invest in China for the export market, but also to tap into the Chinese domestic market. Didn't Ford sell more cars in China than in the US last year? Second, the author said that the Chinese currency appreciated by 20%. that doesn't make sense. Isn't one of the big gripes that the US has against China is that they are artificially keep the Yuan undervalued?