The Next Great Challenger to Chinese Manufacturing | Epic Economics
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- Опубліковано 25 лют 2023
- Welcome to Economic Explained Essentials! In this video, we'll take a closer look at the manufacturing landscape in Mexico and compare it to China. You might be surprised to learn that Mexico is emerging as a potential challenger to China's dominance in manufacturing.
With its proximity to the United States, competitive wages, and skilled workforce, Mexico has become an attractive destination for multinational corporations looking to diversify their manufacturing operations. In fact, Mexico has already surpassed China in certain industries such as automobile manufacturing.
But should the Chinese be worried about Mexico? In this video, we'll explore the factors that make Mexico a viable alternative to China, including its favorable trade agreements, political stability, and advanced infrastructure. We'll also discuss the challenges that Mexico faces, such as its education system and crime rates.
By the end of this video, you'll have a better understanding of the manufacturing opportunities in Mexico and how they compare to those in China. So, if you're interested in learning more about this surprising challenger to Chinese manufacturing, be sure to watch this video until the end.
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Good luck Mexico. I am Chinese, but I wish ppl of Mexico prosper. All ppl in the world should be living a better life. Not just a few.
THANKS MAN, we mexicans are allies of china , so we wish you chinensse people the best too
why not a few? thats how capitlism works... the few stand on top of many
Chinese people will be blessed one when CCP nefarious inhumane dictatorship will finally be stopped and replaced by a vibrant democracy later this year.
Thank God CCP tyranny will stop ruining the lives of all Chinese people.
Mexicans will never enjoy the fruits of prosperity. The super profits always go to the imperialist country which is the United States. They are the ones that enjoy the fruits of Mexican labor in the form of minimum wage. The average Mexican worker can only make enough to replicate himself for another working day, He or she is just another commodity to exploit.
@@deezeed2817 well at beginning yes. You pretty much slave yourselves in the sweat shop for some paper dollars.... We Chinese did that for 20 years. One generation. But we learned a lot in modern manufacturing. We learned how to manage factories, organizing supply chains, established sales network.... When parents working hard in the factory day and night, children get to go to school and studied hard. China went from low literacy rate to the top of most educated population in one generation. Now china graduates more science and engineering students then the rest of the world combined. Of course this young educated generation is not going to just do the low end labor job. So china moved up the value chain. When Chinese company start competing with the corporate America..... Things changed drastically. China became the theft, villain, threat...... You name it. Mexico will be treated nicely now. They need your cheap labors. Keep this in mind though, in 20 years, when you are catching up to you know whom, they will leave to another cheaper country for their low coast labor. I just hope at that time they won't bad mouth you hard working Mexicans like they call us all sorts of names.
I'm a Mexican architect I have worked in several countries such as Germany, Canada, France and Mexico obviously.
Many companies are moving to Mexico 'cause the technology sector is developing very strongly.
It is the US technology and manufacturing sector that is growing in Mexico. NAFTA has solidified relationships between Mexico and the US but it also involves Canada. Both Mexico and Canada are not larger trading partners for the US than China is.
The american technology is sir
Mexico has more engineers then Canada, great colleges with many exchange students from Europe and other country's, inventers and scientist and an aero space industry
I’m happy for you in México. This is a far better solution than US doing business with China. It will also help with the immigration problems. México is not a threat to the US like China is and you all are close. I would be more than happy to dump China and use México instead. I like the Mexican people, they are hard working and good people. It’s just our right wing politicians that have used México as a boogyman and to stoke racism to keep their ignorant voters voting for them.
@Ernest Khalimov Mexico is America sir.
Here in the US Southwest, it’s well known the immigrants from Latin America, mostly Mexico, are the hardest working and most knowledgeable trades workers on the job. Viva Mexico!
No not now, now days, its not Mexicans (few) crossing illegally, even legal migration is low, Mexican populations in the U.S. is over a spend of 70 years, in Mexico's case today, its reverse, Americans are invading Mexico for a better economic life
You think Americans are not hard working people
@@dude6519 Did not say all Americans but without explanation you understand what I'm saying
No
This sounds good for the Mexican economy but it is not. The minimum wage is a shame. The Maquiladoras pay their workers a pittance, if anything enough to survive. They are sweatshops. The only one who benefits are the ruling classes and politicians.
Tesla announced their next giga factory will be in Mexico.
Yeah but Tesla has 2 gigafactories in china
Tesla is for its own interests, not the U.S nor Mexico lmao
@@dragonache705 capitalism is all about self interest.
@@dragonache705 duh. That’s the idea
@@damiion666 Then don’t act like Tesla or Elon will save the U.S like a majority of the American citizens tend to believe😂😂.
Mexico is rising for good. Still a lot of work to do but is moving on the right direction!
They need the president of El Salvador to take the wheel.
@@GregMoress Why, so he can lose more with bitcoin purchases?
@@GregMoress Mexico is an insanely huge country, you are talking about less than 10 million Salvadorans, compared to 130 million Mexicans.
the world is responsible for helping this dictatorship grow by buying cheap products FOR MANY YEARS
@@GregMoressel Salvador needs a president like Mexico 🇲🇽
I was just down in the Puerto Morelos area in Quintana Roo Mexico. They forced some Chinese investors out since they broke their word on hiring only Mexican nationals. These Chinese investors were already bringing in their own “experts” I was glad to hear the government in that state took this action. It’s better for Mexico to serve as a producer since it helps the rest of North America.
@JackSmith-mk1ru I work for a Taiwanese manufacturing plant in the Mexican border to Texas and believe me when I say that bringing asian workforce to México Is actually a norm for them.
Mexico needs a structured migration policy just like the US in terms of work visas.
@Jack Smith this has always been a thing since 2006 is not new
Canada allowed a china mining bought & allowed to operate with chinese miners only for 30 years , smell a problem ?
Don't trust the words of China, it's the opposite of what they say is what they do.
The way I see it is that Mexico won't replace China but help break its monopoly on manufacturing alongside a number of other countries
There is a myth of Chinese manufacturing. It really is manufacturing in the context of assemble. They only manufacture cheap lower tech products.
I don't see it happening.
Since the US just spends its time destabilizing LATAM.
Yes like India and Vietnam
@@dingus6317 India is missing opportunities because of its alignment with Russia and China
@@ricardocabrera3627 it isn't Missing anything infact it is witnessing the largest amount of foreign investment in manufacturing in it's history.
Our electronics good export alone quadrupled in the last 3 year and is expected to increase many folds as lot of new factories are under construction.
Apple is shifting 25% of iPhone manufacturing to india.
And you have to be really misinformed to believe that India is aligned with china when right now thousand of our troops on border are in a face of with china, it is literally considered the biggest threat to our country taking place of Pakistan (which previously used to be perceived as India's enemy number 1).
As for Russia, our ties go old and they have supported India through thick and thin historically, when every country refused to help us in war, they helped us, used their veto for us in UN when we required.
At the same time we are absolutely not in the support of their invasion of Ukraine. And we hope that the war ends quickly.
¡Fuerza México! Mexicans are hard working people, I’ve seen it first hand as the son of Mexican immigrants who have given everything for us to thrive here. You can do it!
Ethnically speaking YOU ARE Mexican too! Your nationality is US-American, but your ethnicity is Mexican, always remember that. Additionally, since you have Mexican parents, you can get your Mexican Citizenship/Nationality.
LMAO they are the biggest slackers. A single Chinese is worth 10 times his Mexican counterpart 🌮
So help us voting out of office the party in power MORENA, if you really care about your roots. They are destroying Mexico's Institutions, one by one.
@@jpp1960your brainwashed 😂
@@frankrz Doubt you can understand basic statistics and public policy.
China no le tiene miedo a México como tal, más bien ve a México como una plataforma ideal para no perder el mercado estadounidense, incluso muchas empresas chinas están estableciendo su producción aquí puesto que si lo hacen desde China les cobran aranceles muy altos que si lo hacen desde cualquiera de los 3 países del T-MEC
Como cual empresa china?
Exacto!
@@Bon3zB3ats muchas están llegando, de coches eléctricos sobre todo
Exacto, por eso mandaron aviones llenos de cubrebocas y pruebas durante la pan emia. Que salieran defectuosas eso ya es otro rollo, como dice el dicho "la intención es lo que cuenta"
Ää
There is another thing to consider, one of the critical projects developing in Mexico is the railway system (corridor transísimico) that will cross from the pacific ocean to the gulf of Mexico, competing with the Panama Channel. Instead of sending products from Europe or Asia to the US through the Panama Channel companies will use this corridor instead, as it will be cheaper, and faster. These will push the Mexican economy as well.
If the corredor transismico was viable it would have been built by a private company by now just like the Suez and Panama canals were
How will that corridor differ from American ones?
@@sdb2885 - this time it’s the federal government doing it look up “Corredor Inter-Oceanico”
In short - one renovated mega-port in the Gulf Coast in Veracruz connecting another brand new mega-port in Salina Cruz Oaxaca in the Pacific
The connection is via train tracks and a super highway - two giant cargo airports at either end will cross the country in hours vs days through Panama
@@brian_be_flyin
Why did no one from the private sector do it before or even offer to do it now?
The other 2 canals were built over a century ago. What makes you think our government is not making another unviable project dedicated to the ego of another corrupt president?
@@sdb2885 you mean an American private company? the Mexican government has been offering bids but they never go through (corruption, cost, etc.) and now it’s the government doing it under the current administration
非常看好墨西哥，不止中国把供应链放在墨西哥，美国也把工厂转移到墨西哥. 祝福墨西哥越来越好.
Thanks😀
Ah claro, si seguro
Muchas gracias amigo por tus buenos deceos a mexico..
@@Srkaustiko Ste chinito está re cocowasheado el wey jaja
viva la democracia y la libertad
Mexico is a rising power that no one should under estimate.
Ya if Mexican stop the drugs trafficking n corruption Mexico can be largest economy.
Im Mexican and will gladly underestimate it.
Mexico must abandon liberalism and setup State owned enterprises and conditions like China for every last sector and to promote tech sharing so Mexico can create and innovate its own national brands for the first time like China.
@@ernestkhalimov1007 state owned is socialism. Capitalism is conservative or neo-liberalism not classical liberalism
@@timlinator liberalism is an umbrella term and must be abandoned in all its forms which will elevate Mexico .
China did it and they are succeeding so much that the US is building up its military even further to stop Chinas growth.
@@ernestkhalimov1007it also must get rid of its corrupt government and the cartels that set it back
I've been saying this many times in the comment sections of videos and articles about manufacturing that Mexico is the place to go since they are our ally, they are close to us, and their labor cost is cheaper than China. Also, with this move, there is less reason to migrate to the US. I also think it will help reduce the crimes in Mexico, which sometimes blows over to the US.
Crime is exaggerated, on the topic of crime, think you just better stick with the U.S.
Americans love for drugs (first world drug consumer and gun producer) is what keeps violence in the USA, not us. Stop being junkies
¨ally¨ hahahahahahaha LOL
@@aiden7891 relax doofus
It is in North America's best interest to strengthen members and the region against foreign threats.
I hope Mexico replaces China because I live in San Antonio , TX and I love the Mexican people.
🥰
They won't, they have strong unions. 😂
@@V1z10n yet somehow their labor is cheaper than China and more efficient
@Jack Smith keep dreaming cuc k🤣🤣🤣
Calmate Britney Spears
God bless Mexico and it's people 🙏👍
Uh... thanks.
thanks, you too
@Jack Smith they are an atheist country.🗿
@@LegallyNoturDad That's why they are gonna fall in the near future.
@@fernyaldrete1037 lol no
As a Mexican, one of the biggest investors is in fact China and they have supported us in this area, so I belive they are not afraid, on the contrary they seem to be happy about this to a degree for some reason...
Its funny that people thinks china was afraid, when in reality, even they want to outsource peoductions elsewhere lmao
Lol no China is not one of the biggest investors in Mexico. Not even close.
The biggest foreign investor in the Mexican economy between January and September (2022) was the United States, with 39.1% of total FDI coming from that country. The next largest investors were, in order, Canada, with 9.5% of total FDI; Spain, 7.1%; Argentina, 4.9%; and Japan, 3.9%.
Chinese cheerleaders are usually Chinese misinformation bots.
@@weewillywonga Well that is weird, a lot of Chinese companies and government investments have made it into the news, behind the USA, Germany, Canada and more or less the same amount as South Korea and Italy
Spain and Japan have also been mentioned but less than China and no one even mentions Argentina
multi lateralism is embraced by everyone except US/Europe
Nah China just hopes to use Mexico to attack the u.s
But yeah the u.s should send all manufacturing we have in China to Mexico
It’d be better for the environment
Cheaper shipping
And Mexico is our friend unlike China who likes committing genocide
I know this is not a great example but Mexican made Fender guitars are just as good as American made Fender guitars. Yes it’s true the factories are literally near each other except for a border lol but even American made Fender guitars are made by Mexicans as well. Point is the made in Mexico guitars are just as good and well made. I know it’s a silly comparison but what Iam saying is Mexican manufacturing has potential to make quality goods as Fender is one of the worlds popular guitar companies and to manufacture instruments it takes skill. If anyone has ever heard of Thursday boots a leather boots brand, they have their boots made in Mexico with excellent quality.
One little detail you might not know is that many big names already bough Mexican products because of their quality and only put their brand on them, but asked the Mexicans not to put "Made in Mexico", yet some of them hid that in certain parts of the product, especially shoe makers since it was easier to hide
They are cars that are manufactured in Mexico
BMW M2
Chevrolet Blazer EV
Chevrolet Equinox EV
Honda Prologue
Mazda CX-3
Audi Q5
BMW Serie 3
BMW Serie 2 coupé
Chevrolet Equinox
Chevrolet Blazer
Chevrolet Silverado Doble Cabina
Chevrolet Silverado Cabina Regular
Chevrolet Cheyenne
Ford Bronco Sport
Ford Maverick
Ford Mustang Mach E
GMC Terrain
GMC Sierra Doble Cabina
GMC Sierra Cabina Regular
Honda HR-V
Hyundai Accent
Infiniti QX50
Infiniti QX55
Jeep Compass
KIA Rio
KIA Forte
Mazda CX-30
Mazda2
Mazda3
Mercedes-Benz GLB
Nissan Kicks
Nissan Versa
Nissan NP300
Nissan Sentra
Nissan March
Nissan NV 200 Cargo
RAM 4000
RAM ProMaster
RAM Crew Cab
Toyota Tacoma
VW Tiguan
VW Taos
VW Jetta
This basically regurgitates peter zeihan’s projection of china’s fall and mexico’s rise due to demographic changes. And the not surprising fact that mexico has some of, if not the best skilled/cheap labor force in the world.
It is not just cheap labor that they have. What they have is a stable cost market. They are not a super cheap market they are competitive.
China has a market that has increased in cost 20 fold in the last few decades.
I would definitely like to see the US completely independent from Chinese manufacturing in the future, as unrealistic as that is. The US should focus on moving away from China and closer to our fellow democracies, especially now with soaring tensions.
@@user-lk4no3vo8q Pretty sure that with democracies he meant that the US should shift investment away from authoritarian (and genocidal) regimes like China. Mexico may not be the freest country but at least there's some form of democracy and pluralism. Plus, having good ties with democratic states is always a better choice than a centralized regime. You never know the odds. Just remember what happened to Europe for depending too much on Russia.
@@alexibm2477 As a Mexican I would even argue we are way too free. As in excessively, to the point that so much stuff goes unpunished that it truly feels anarchic at times lol. My elementary school English teacher was Canadian and he always went on about how the USA calls itself "the land of the free" but only in Mexico did he ever truly feel like he could do whatever he wanted.
That being said... as great as that sounds, it is also the point of origin of all the problems my country is sadly known for. When it's that easy to get away with anything, then someone is bound to take advantage of that in undesirable ways.
Some planning and regulation would go a long way to help MX achieve the level of development necessary to become an advanced economy. I'm not saying we should go the Italy route and make things so bureaucratic that obtaining a permit takes anywhere between years and lifetimes, but there should be a sense of order. We're also in desperate need of better urbanism, just saying.
But yeah... we hold elections (sometimes rigged), we are allies with the US (although sometimes it gets tense), people are massive consumers (we love spending money as much as Americans, we just don't have as much yet), gay marriage is legal, and we overall let people behave however they want (even way past the cringe threshold).
If that's enough to qualify as a Western, democratic, and "free" country... then I say let's fkng go. We should have become friends long ago if you ask me.
@@luislicona386 lmao we are like the florida man of latin america
The democracy here in Mexico is a joke.
@@alexibm2477 Genocidal? The US is the real genocidal country. Do you know about the Iraq war? the korean war? the vietnamese war?
Mexico is not truly democratic, neither the US.
Yup, 100% true. Many people in the US still don’t get it but Mexico is a vital part of the US supply chain which means the economy. Right now corporations are scrambling to find and setup locations in Mexico due to the issues with China but at this point it may be too late. We need to change how we view Mexico in the US. We also need to get more involved in Central/South America as China is rapidly laying the groundwork to control much of the resources worldwide that the U.S. needs.
With China and Russia on the horizon, and an increasingly weak Europe, it is more advantageous for the United States to have a strong ally in the South at all levels than a weak country. You need to stop thinking in the south just like a land full of resources and start thinking in us as a equal partners.
@@lannisterlodbrok On an equal footing. As for the resources, the US is doesn’t use the South for that as much as others. I would say the US needs to treat S/C America different. They need to pay more attention.
We need a united America, not the country, the continent. Respecting our differences and always, above all, respecting our sovereignty and our decisions.
U. S has bullied central and South America for more than a century. Half the people tend to dislike the Yankees because of that. The amount of coups, government overthrows of legitimate and even some democratic governments , CIA operations, human right abuses instigated by the CIA, invasions and fragmentation of nations to benefit the interests of US like what happened with Panama/Colombia, support of Pentagon friendly dictatorships, support of corrupt and inhumane corporations that have exploited people and the environment...
So you guys need to start by apologizing for all of that and stop pretending "America" is the good guy in this planet. You are not, far from it. I would have preferred the Chinese, they were a more civilized hegemon in their ancient past to their neighbours.
As a Mexican when you say more involved I really hope you mean by trading, interacting diplomatically with us and such. Many atrocities where sponsored by the US in my country and around Latin America during the cold war with the excuse of combating the spread of communism and it is still an open wound
Let's Go Mexico, you can do it 🎉
The new Japan. A strong economy equals strong military. A strong military equals increasing influence. Mexico is in the right track to become a great power within the Americas. I don't think this isn't just Mexico, Brazil has the potential too.
Yep!! but Brazil is too closed to China and Russia.
Actually, the rise of China is US fault and all because they didn't want a close "Japan" like competitor, to the south of their border, instead of think of a potential partner they preferred to develop China and you have to thank for all of it to Zbgniew Brzezinki, check him out. Now you have a powerful China and your partner trying to thrive on its own.
Brazil is past its prime already. The new leadership is also not desirable. Mexico has vast advantages
@@user-ez2qd3gu5v yeah, Brazil is looking to be Allies with those outside it’s continent
NYT had a podcast recently based on an article regarding manufacturing in Mexico. They pointed out that MANY Chinese companies themselves are now in the process of building factories in Mexico or very recently completed them. They visited one industrial park near Monterrey, Nuevo Leon in the north where 28 Chinese companies are in the process of building factories. There are 4 major reasons mentioned as why Mexico is seeing increase in manufacturing that are related to China:
1. Transportation issues. 2020 Pandemic caused a lot of supply chain issues. With facilities in Mexico, they don't have to spend 3 weeks in the Ocean on boat and then possibly be delayed weeks off the coast as was the case during the pandemic. Mexico of course isn't the US so it's completely bringing it local but considering it's ground transportation and next door, there are far fewer possible issues. In addition, for larger items it's much cheaper to ship from Mexico to US than from China to US. It might not matter much on small household items were the cost of the freight to get to the US for each item might be a a few cents but on larger items like appliances, TVs, cars, etc, those cost are high.
2. Tariffs. Mexico is part of NAFTA (or whatever the new name is) and thus free trade. China has been hit with increasing tariffs in the past 6 years. Chinese companies are taking advantage of this despite blowback they might receive from China's government.
3. Uncertainty with China-US or China-West relations. In case China is sanctioned or just consumers in the US or west not wanting to buy Chinese made goods, being made in Mexico allows them to mostly avoid such issues.
4. China's labor costs have continued to increase. For Chinese firms, this means they might be financially better off by opening up facilities in Mexico for North American market when you consider in factors 1 through 3. For non-Chinese companies, much of the same. If they are going to build a new factories, why go to China if you're market will be the US & Canada?
I hope they sanction the crap out of those Chinese companies in Mexico. They shouldn't be receiving any money from U.S. customers.
Another lost opportunity, first Africa, now in its back yard, poor USA!
@@yngvesognen1092 You realize one of the former Chinese minister of finance said “we could teach them how to make clothing but they are more interested in dancing around celebrating nothing” Africa is not being industrialized by china it is being used for resource extraction
@@yngvesognen1092 What lost opportunity by who?
@@Homer-OJ-Simpson, I suppose Africa wasn't interesting for the USA because there were no profitable wars to fight there, but China is all over Africa now.
China is also "invading" Latin America, everything south of the USA.
Independientemente de este análisis, se vienen cosas buenas para el país, paisanos.
Y no dejarse manipular por los medios controlados por el corporativismo. Evidencias hay miles.
Y el agua? 😢
@@itzelouise8714 no todas las regiones del país sufren de sequía.
This sounds good for the Mexican economy but it is not. The minimum wage is a shame. The Maquiladoras pay their workers a pittance, if anything enough to survive. They are sweatshops. The only one who benefits are the ruling classes and politicians.
Y los narcos?
No one else other than the Americans know how hard working Mexicans are, for sure Mexico will be the next factory of the world.
As a Mexican I tell you that if you can, you already know the Mexican immigrants and if you can, you just believe that we can
They are the biggest slackers, they steal, much worse things too.
Lots of love to my Mexican brothers and sisters from India ❤️
A lot of my power tools are made in Mexico, which was a pleasant surprise. The real shock came when I saw my gaming monitor was made in Mexico.
It has begun! Viva La Mexico 🇲🇽
And I also have a theory that we’re gonna end up finding rare minerals in Mexico‘s deserts in soil overtime because once people start looking, you’re going to find
They already have. Joe Biden met with AMLO to talk about Lithium mining in Mexico.
despite it’s flaws I love Mexico, it’s a country with great people and so much potential
also if we’re talking manufacturing, I’ve been loving my new Ford Maverick which was built in Ford’s Mexico plant
nice nice
Me watching this video from Mexico btw I’m Chinese working for a Chinese company in Mexico lol
Vamos por unos tacos
Jaja, saludos desde Torreón amigo 🤙
Rather Than Tesla, I think the bigger game changers 🇨🇳 are the Chinese electric auto-makers that are about to land in México 🇲🇽 Chirey-Nio, BYD, SEV, and others combined like $10BN 🇲🇽💪
@@jairocuriele5864 And jetour 1000B
It is in Mexico’s best interest to be a neutral player and host both American and Chinese companies.
This is real cause recently I was looking at 1tb internal SSD to buy and came across this brand Crucial which sells SSDs by Micron and was surprised to see it was manufactured in Mexico not China.
Mexico already manufactures 45 cars of different models, even more are expected, you will probably drive a car made in Mexico as well
@Ricardo Cabrera Nope India has 125% import tax for cars not manufactured in India so yeah if they wanna sell cars or bikes in India they need to manufacture them in India. I mean Jeep recently entered India and they started manufacturing in India.
@@saimadhavarao Are you Indian?
@Ricardo Cabrera Yes that is why I felt it was really strange we had SSDs made in Mexico being sold very aggressively at competitive prices in India. Now we do have Micron Technology based in India but they are like R&D centers and not manufacturing units.
As a Mexican American that loves both counties very much, I sincerely hope both countries continue to grow, I hope to see less cartel activity in México while simultaneously see less people in the USA dying from overdose. Vamos !!
why did you go on a random unrelated tangent about pyramids? that has literally nothing to do with the video.
As long as everyone gets a piece of the pie especially in salaries it’s a win win situation
As some of us know, this is already beginning. Many countries especially the US were greatly alarmed by shortages and breakdowns in the global supply chain that potentially risk important products like PPE. They are also sick of Chinese constant theft of American technology conservatively valued at 1 trillion a year (yes 1T).
The decision has already been made; Many American companies are in the process of reshoring. This process will speed up and not stop. Due to the obvious labor shortages this will create the Americans for security & economy purposes are shortening their supply lines. Mexico is about to experience the change they've always wanted and replace China for many products. But they won't be the only ones, the Americans, so as not to be beholden to China or anyone else are shifting their supply lines across world.
Viva La Raza!
It's all about egg rolls or tacos. No not dog or hamburger chances.
south america is too unstsble.
The pyramids shown are of Teotihuacan not Cholula.
6:21 you mean this is not Cholula?
@@iaber1698 yeah, that's not the pyramid in Cholula. That's the pyramid of the Sun in Teotihuacan. The pyramid of Cholula has a church at the top.
@@Chanok69 well, i see a temple on top
@@iaber1698 the pyramid with the measurements is not the correct one.
@@Chanok69 I get it, but I did see cholulas pyramid in the video.
May Mexico prosper and prosper. Healthy competition will benefit more consumers.
Yes to the first, but consumer is a hideous word
As a Mexican, I thought this kind of news only were told in Mexico, but this gives it a step to credibility, really Mexico is gonna be one of the greatest economical powers.
But I don't like China's companies cause of their government and their national security law.
Kind of funny you don't like Chinese companies, but then are quiet about the American or other foreign ones.
Capitalism is an equal opportunity oppressor. Make sure you push back against all of it.
Which you only see through western news…
@@SchooledSavage692 yeah, cause Chinese government censors it in their country. I also know Arab news, African news where China is giving credit for anything, INDIAN news with all the tensions, and some south Korean news, overall all Asians countries have tensions with China, specially Taiwan.
I am glad Mexico is adapting. In this world it's adapt or die. China, in my opinion, stretched themselves too thin. If Mexico, as a whole, can focus on diet and education then I think Mexico can excel.
education and security i believe are priority, but for that to be succesfull mexico should enter in to a dictatorship state for a while, so people can get more easily reeducated, because at the current state i dont see mexico being more them vietnam or china in terms of development, i dont see mexico as a first world nation
Problem with China is that it is drifting towards isolationism. The trend is to move away from China. If the govt acts irrationally, then it is not good for business.
@@kwanman5146 china isolationism? they are building road around the entire continents to build a new commercial way, to make it more easy to acces other countries... while china is building road and bridges, USA is building WALLS
Years ago, I was listening to a podcast interview with a guy who started a company that made drones through 3D printing. The drones were for various things like search and rescue, ranchers to patrol their land for predators, etc. Anyway, the guy said his business really took off when he met this 23-yo Mexican student. The student's home city was Tijuana, and he suggested this guy expand his manufacturing by having the drones made there. The guy was shocked; wasn't Tijuana just a big party city? No, the kid explained. It had a vibrant industrial/manufacturing center and was a perfect place for what this guy needed to do. His company surged after that.
I think here's definitely potential, the bajío and northern regions are already buzzing with industrial activity, but there's too much political will needed in order to provide the infrastructure and resources needed to become an advanced industrial economy
The North is the most promising especially the ones that have a border or is really close with Texas. I see a great future for that area
The south is building transport trains in order to move larger ammounts of products from the Pacific to the Atlantic, in China's words "Mexico is the new silk route"
So yeah Mexico is about to retake what made New Spain one of the biggest economies of it's time
This channel is becoming a powerhouse on its own.
Honestly I hated this video compared to their usual ones. The unnecessary joke narratives and editorializing are exactly what I thought I was coming here to not have to see.
Also the VA sucked. Sorry man, you can do better.
Still interesting topic and great information, but why am I hearing about Spanish conquerors (just say conquistadores) or a whole paragraph introduction to pyramids in Miss Susie’s math class?
What program do you use for the mapping?
Good for Mexico Beautiful country deserves to prosper best of wishes
No country should worry about competition as long as it is fair. If you cannot win in a fair competition, then it is just a fact that you are not competitive enough. You just got to work harder. Nevertheless, there is the option of win-win for both parties. - you do what you are good in and share in the overall output.
Vamos México!
For some reason, as a teenager, I could see how heavily we relied on China and what kind of dependence we were going to have on them. I always thought to myself, "Why don't we slowly move our manufacturing to Mexico?" It's crazy how so many years later it looks like we're heading in that direction. Never did I think that idea would come to fruition.
It is great! We should have never moved manufacturing out of this continent! It would have better served us to keep everything here in North America.
The media used to say Mexico would be the next Japan, and it never happened. Don't get me wrong, I wish the best for the country, and its people.
Mexico needs better wages for its workers
Those were other times, even the United States intervened so that this will happen to us do not forget that a former president of your country said that it was not convenient for them to have a Japan on their borders, but now it is different, they need us, only this year 44 foreign companies will arrive in Mexico of the 400 that have been approved
6:07 that's not the pyramid of Cholula. That's the pyramid of the Sun in Teotihuacan.
Large Chinese-owned factories are moving to Mexico. Chinese are buying land and building a town for themselves. Chinese businesses need to diversify their exposure to geopolitical issues with the US. Mexico is the way to go for the Chinese manufacturer.
How does this make any sense? How could China ever hope to protect its trade in the pacific if it does something stupid like invade the country of Taiwan?
And if there is a serious conflict between the U.S. and China, won't Mexico just nationalize and harshly sanction Chinese companies like the EU did with Russia? If Mexico had to choose between the USA and China, it would probably go for the USA.
@@huckleberryfinn6578 Chinese thought about that as well. They are using Chinese Mexican nationals. Chinese are disguising themselves as Mexican Companies and using NAFTA to the fullest extent.
@@huckleberryfinn6578 ........ You know corporate America has more investment in china than Chinese investment in America right? Same goes for Europeans too. If china nationalize those corporate assets, it's the west has more to loss. And who runs the country? That's why I don't think America or Europe would do something like that, but you never know. Anything can happened in todays crazy world.
Let's hope everything goes well!!
5:59 meanwhile the tallest pyramid is claimed to be that unfinished hotel in Pyongyang North Korea, although i find calling that building a 'pyramid' a bit of a stretch
North koreans never claim that.
I been following Mexico’s economic growth for the last four years, my only concern is still the cartels control over certain territories and its influence on local governments🤔
A lot of it it's just alarmist crap.
You should be especially attentive this year, infrastructure works will be inaugurated and 44 foreign companies will arrive this year, plus those that were not contemplated as Tesla and phillips
Me encanto tu video, muy bien informado, y bastante explicativo.
Back in the day, companies wanted cheap labor and resources, so off-shoring became available. But there can be a supply chain lag because of the shipping. Not so long ago, the concept of "near-shoring" came into effect, with Mexico providing cheap labor and resources, and shorter supply chain lag due to its proximity. Majority of the factories are near the US-Mexico border. Another interesting spin is that Mexican Americans would travel from the US side to the Mexico side to go to work, as well as the local Mexican communities. As a result, an increase in skilled workers are available from both side of the borders.
Based on my conversations with Mexicans, they are very sceptical Mexico will ever match China on manufacturing. They think the country is way too politically fractured to develop the infrastructure required to be the workshop of the world. There's huge ideological and economic divides between northern, central, and southern regions.
One word, narco. As a mexican corruption and insecurity are 2 big problems both for the population and for development
@@cagc7963 As another mexican, yes, narco is a bigger problem than politics.
yeah but those are temporary, in truth Mexico has been going in the right direction for about 30 years now
@@cagc7963 The narcos aren't a major problem everywhere in Mexico, though they are a big problem in the north and west. Mexico City is relatively safe. The south has more of an issue with poverty and loose government control, the Zapatistas effectively run a quasi-independent socialist/marxist/anarchist (not one's really sure where to put them) autonomous state in many parts of Chiapas. Mexico is a country with a government that often struggles to govern much of its own territory, either from narcos or political radicals, practically the opposite of China.
I live near the border and everything you said was totally false.
Mexican manufacturing has been growing for the past 30 years.
Countries like Vietnam, Indonesia, Bangladesh Philippines & Nigeria will also be a manufacturing hub
they won't be as big like China or Germany,Japan but they will mid size manufacturing powerhouse
bro you forgot INDIA
@@harshnarware India has anti-manufacturing policies so Vietnam is ahead of India.
I doubt about Nigeria
Nigeria is a petro-state
It doesn't have much industry like Asian nations
Yes, it's many countries that are generally 8%-20% the population of China that are slowly taking away some mfg from China. India too will be a big manufacturing hub but no where near as big as China as explained in the original EE video. But with Vietnam, Indonesia, Mexico and India alone, if they achieve half the manufacturing of China per capita that's, that's 2 billioin people at half the mfg of China which would be equal to about 1 billion people in China or 2/3 of China. That's if they only achieve 50% the mfg per capita as China.
Nigeria might be a little away from being a manufacturing hub -- it's too much of a petro state right now and not ideally located either. It's not right next door to Europe or other large consumer markets and it's far from the supply chain so getting parts for the manufactured goods are more expensive.
@@harshnarware usa will definitely not create another china LOL
Well, not China scale of course, but we can complement the North American economy even more. What is sorely needed: better governance, more infrastructure.
The US-Mexico relation is the most complex and biggest between two countries. +800 billion dollars in commercial trade per year. México is the US main commercial partner in the world: number one buyer of US goods and services and number two exporter to the US. And that number increases every year. North America Will be the most dynamic and stronger economic region.
Watch as people flock from America to Mexico
Already happening with retirees and digital nomads. A good thing.
The cost of living is crazy high in the US and Mexico has a lot of American products
If the U.S. Surface Transportation Board approves, the Camadian Pacific will buy the Kansas City Southern, which extends well into Mexico. The KCS moves a lot of rail cargo between Mexico and the U.S. The merger will connect Chicago, the upper Midwest, and most of Canada to Mexico. That will improve the flow of goods in both directions.
With love to our Spanish brothers from Texas
New Sub. 👌🏻
I'm proudly Mexican, and all these amazing chances that Mexico will have to develop its economy and best life is thanks to our current president, AMLO, he makes mistakes like every single human, but this extraordinary person is doing his best to take us there.
Mexico is opening its doors to different trading partners that's why the USA is getting closer because they are realizing México could do better.
I mean Chinese manufacturing is in the period where it needs to let go of the low value-added segments and move up the value chain to escape middle income trap, so the question of Mexico challenging China is null because its more about the competition between countries like Vietnam, Mexico and other developing nations that want to receive the manufacturing segments that China wants to leave behind.
Cars and electronics are high value manufacturing wth are you talking about?
China is being left behind. It will be an interesting period of transition as the world realised that the China dream for foreign investment is over.
@@12mauro21 parts RD and manufacure are high value, assembly are not. same with electronics. Have you seen the sweat shop in china producing those cheap cars and electronics?
@@12mauro21 china is going into R&D field and sophisticated manufacturing. The assembly line are less and less competitive and transferred to places like Vietnam and mexico
@@weewillywonga haha funny
Do you have an etf ticker to follow the Mexican stock market?
Yes, EWM or something. Type mexico etf in your broker search bar.
EWW has been growing record highs.
The pyramids shown are Teotihuacan, not cholula, completely different civilizations
much love to Mexico. extremely hard working and family oriented people. From California.
Manufacturing Globalization 101: don't put all your eggs in one basket --- any basket.
What about your local basket?
@@baronvonjo1929 We all know about the economics of local vs global baskets. However, I think nations should keep sufficient essential productivity at home.
This is why mexico shouldn't accept this deal and go with the brics alliances. Why take a deal that makes us totally dependent on a country where the politicians are talking about dropping bombs on us or putting tanks at the border? Brics has always been on the table and both russia and china have offered to help us with our cartel problem if we have no more friends in north america why not make new ones elsewhere?
@@robertwest4157 Why take a deal that makes you totally dependent on a country THAT IS dropping bombs? Congratulations, "West", you have taken trollish ztupidity to new levels.
Hep hep hooray! I am an American and I've been wishing for this to happen. Viva Mexico! Viva America!
I can't remember it, but a few years ago I read of an American tax law that favours US companies investing overseas
That needs to be changed!
Oh. I was expecting Vietnam…
I was also expecting it
Same
Yeah. For the American continent, Mexico is the right fit. But for traditional trade partners with China, i.e. the rest of Asia and Oceania, Vietnam seems to be their go-to. I think the video is way too US-centric. Which is not bad, but kinda misleads Mexico as the manufacturer of the "world" as opposed to the "United States".
@@sdarkpaladin Well, if we strictly talking about shipping distance, its probably right for most of the world, as the Pacific ocean is far wider than the atlantic.
Vietnam does not have a skilled labor force like Mexico does.
Mexico's labor force is even better than China's and cost less.
Let's go Mexico!
Amazing 😳😳😳
There is a little confusion with the pyramids. The one that appears first is the Pyramid of the Sun, in Teotihuacan. A very good video. Agree on everything.
And let's address elephant in the room: the insecurity because of drug cartels.
one would hope that the economic development of the region will diversity the revenue streams and opportunities of the people enough that joining a cartel would no longer be appealing.... much the the mafia of the US moved into union control (see the origins of the teamsters union).
Better and easier to deal with cartels than the issues in china
And water insecurity! A nation can't become an industrial powerhouse or maintain its capabilities without stable utilities.
Destabilize the country. Install US corporation friendly government. Exploit people and their resources.
We are still on step 1 and the cartels are vital to this, for now they stay
Let's not forget the keystone to the cartels: corruption.
Already booming in electronics and cars.
Often ignored is the relative low cost of living. It's not that they're payed peanuts, it's that they need to spend fewer to survive.
Also infrastructure. Mexico is more developed that people want to know, from highways to rail, internet, and health.
Also, trade agreements with most of the world. USA is an obvious costumer, but Europe also has dealings with the country and has factories there.
@@user-lk4no3vo8q also no free thought
@@user-lk4no3vo8q they wish. Mexico has a higher hdi than India can hope for, gdppc, and no Muslims
@@user-lk4no3vo8q bot, China is atheist and pursues religious people. Heard about the gyigurs?
Greater distinction of the term "manufacturing" or even "makes" versus, say, assembly, is required before implying China somehow dominates certain industries.
I am curious as a Mexican as to know what whas the background music utilized for this video specifically when you mentioned Mexico
Well, the maps might lead to a scewed view on distance between US and China, as they ignore the pacific as a direct connection.
This channel kisses US ass so much it's very annoying
This would be a huge win for America and Mexico. We drop dependence from China, we get reduced cost, and much better supply chains. Mexico gets a stronger economy that will probably incentivize less crime and less migration to America. And for me personally I’ll probably get to go down south since ima manufacturing engineer lol
Congratulations for your brilliant analysis and prediction about which country will emerge as a potential challenger to China`s dominance in manufacturing. I agree it will be Mexico and Indy!!!
1:10 : USA, Germany, and Japan are also China’s largest trading partners. Mexico, Canada, and China are USA’s largest trading partners.
1:45 : Another business video mentions that businesses “evolve” to be service economies. Pretty interesting that they’ve passed China in that respect.
2:15: Mexico is one of USA’s major trading partners, along with China and Canada. Per NAFTA, Mexico *should* have become USA’s manufacturing partner *decades* ago. But China was cheaper.
Glad to hear the good news about Mexico. A higher standard of living should fix many of the problems there, though not all.
Lo hecho en México 🇲🇽, esta bien hecho 👍🏻
Im really going for Mexico.
Viva Mexico
I like the outro.
Literally just last week Tesla announced that is going to build a gigafactory in Nuevo Leon, Mexico
Can that Australian guy narrate this channel? I prefer his accent.
1:35 you got this map right but the next second and you completely mess things up by showing a map which is outright foolishness. I enjoy your videos and watch each of them but seeing incorrect maps like these really degrades the experience and makes me wonder how you can ignore such a geopolitically important aspect.
that was reference to economics explained video he was talking about , it was old, atleast they updated it now, Be happy
I hope so!!
I love the video, but could you please turn the background music a bit down :( I can barely hear you.
I think currently yes India greater share comes from services but I do think given current focus of government on producing more in house for its own people with push towards better infrastructure and low transportation cost and responsibly cheaper labour would automatically bring more manufacturing to India. I think they should just focus on fixing the basics first and given the sheer size of growing middle class… more and more manufacturing would move to India. Yes export should be focus as well but first let’s produce for our own population and improve quality and reduce cost…. Rest would take care of itself.
India has a much larger consumer market than China has. This can be seen in the growth of domestic indian companies that have not gone international as of yet.
I just hope air bags won’t explode this time
Mi país siempre me decepcionó durante 20 años, ojalá y esto tenga razón para que eso cambie, suena prometedor
as a mexican, gotta love this video, and not all the lies that the altright is spreading against our president
China and Mexico have good relations and economic connection, Mexico has good relations with many nations and other trading partners, not just the U.S., don't know any country that Mexico don't have good relations with
China and Mexico have a relatively weak FDI related relationship compared to other smaller countries.
The biggest foreign investor in the Mexican economy between January and September was the United States, with 39.1% of total FDI coming from that country. The next largest investors were, in order, Canada, with 9.5% of total FDI; Spain, 7.1%; Argentina, 4.9%; and Japan, 3.9%. China isn’t even close to these.
@@weewillywonga Please direct me to that information with reference
@@weewillywonga Today that must be very different Chinese companies have begun to move to Mexico, for example, jeutor with an investment of 1000 million dollars
@@weewillywonga Bullshit within the next 20 years Mexico will be an economic superpower Mega projects in Mexico more engineers then Canada and will create a Mexican type Panama canal
HECHO EN MEXICO ,As Mexicans we know that , if is made in Mexico is a good lasting product. Tires, Tools and electronics etc.
Makes perfect sense, especially if the USA remains a major market. Transportation costs should be lower as well.
Is weird that this theme is trending, I'm Mexican, got a mechatronics engineering degree from the country's best engineering university, and as soon as I could I leaved manufacturing for IT because low manufacturing wages, just as almost every other classmate. Now I'm living at the US and there's no way I'm returning, as most of my former classmates. That's growth is not gonna happen, most of the well educated Mexicans are already living outside of Mexico
What do you think makes people want to leave and not return?
Is the brain drain just about better pay?
Sorry, just curious. Canadian with a Mexican roommate doing a business masters and a Columbian roommate who does web design.
Would you go back for better pay? It seems Mexico is growing economically so an opportunity may come up.
it should add more options for less educations mexicans to get decent paying jobs to survive in mexico without needing to leave
IT IS A MATTER OF TIME
Cool, more jobs for the engineers back home. Viva Mexico!