The Rising Tide of Anti-Globalization and Trade Barriers
In today’s world, the countercurrent of anti-globalization flows strongly. Trade barriers resemble hidden reefs and contracurrents, obstructing the ships of trade and damaging the masts of cooperation. China and Mexico now stand at a historic crossroads.
The Theory of Comparative Advantage: Mutual Benefit Shines
Trade tariff wars disregard the mutual benefit arising from comparative advantages in trade. David Ricardo’s theory of comparative advantage suggests that free trade reduces the price of basic consumer goods for the population by promoting fair competition. There are no absolute winners among countries; only by maximizing strengths, minimizing weaknesses, and exchanging reciprocally can global well-being be maximized.
China’s manufacturing efficiency and Mexico’s resource abundance; China’s vast market and Mexico’s unique geographical position: neither trade wars nor tariffs can alter the complementary nature of our two economies. China-Mexico trade strengthens Mexico’s position in global supply chains. It is evidently unfair to segment industrial chains with tariff disputes and generally link trade deficits with China to job losses in Mexico.
The Prisoner’s Dilemma: Cooperation is the Rational Choice
Raising tariffs and erecting trade barriers is not the solution. Trade barriers, like “tariff walls,” are like large rocks in a river’s course: they can divert trade flow to some extent but cannot stop or isolate it from international exchange. Tariffs, appearing as a protective shield, are actually a self-inflicted spear causing a chain reaction that raises costs, fuels inflation, and ultimately burdens Chinese and Mexican consumers with bitter consequences.
China’s advantages in areas like new energy vehicles, photovoltaic equipment, and digital technology align highly with Mexico’s strengths in automotive manufacturing, agricultural food exports, and regional market penetration power. Only through coordinated tariff reductions and joint market expansion can we break this vicious cycle and achieve “a win-win game.”
The Path to Long-term Growth: Openness Breeds Prosperity
Trade barriers not only increase business costs and weaken industrial chain resilience but also prevent deep interconnection of key industries in both nations. Facing this challenge, “confrontation and isolation” are not suitable solutions; only by addressing the problem through cooperation can we transform this challenge into a new opportunity to update our economic and trade relations.
Economic and trade cooperation is the cornerstone and growth pole of Sino-Mexican relations. In recent years, bilateral trade volume has continuously increased, more Chinese companies have invested and established businesses in Mexico, creating jobs and upgrading local industries. High-quality Mexican products like avocados and wine have also gained favor among more Chinese consumers.
The Aspiration of a Community of Shared Destiny: Surmounting Mountains and Seas Together
In this era where global economic capillaries are deeply interconnected, opportunities for countries’ development can only sprout by “tearing down walls” rather than “building them,” by “giving each other a hand” instead of “threatening with a fist.” Amidst the world’s economic recovery facing uncertainties and the rise of protectionism and unilateralism, responsible nations like China and Mexico must act together.
China consistently upholds opening-up as a basic state policy and is willing to cooperate with Mexico to deepen pragmatic cooperation in all areas, jointly safeguard the multilateral trading system, allow Sino-Mexican cooperation fruits to benefit more of our peoples, and inject new impetus into the structuring of the China-Mexico Comprehensive Strategic Partnership.
Key Questions and Answers
- What is the main issue discussed? The article discusses overcoming trade barriers between China and Mexico amidst rising anti-globalization sentiment.
- What does the theory of comparative advantage suggest? It suggests that free trade reduces consumer prices by promoting fair competition, benefiting both countries involved.
- Why are trade tariff wars problematic? They disregard mutual benefits from comparative advantages and can harm global well-being.
- What is the rational choice in the face of trade barriers? Cooperation is the rational choice, as raising tariffs and erecting barriers leads to increased costs, inflation, and consumer burdens.
- How does cooperation benefit long-term growth? Cooperation breeds prosperity by deepening interindustry connections, upgrading local industries, and creating jobs.
- What is the aspiration for Sino-Mexican relations? It is to surmount challenges together, fostering a community of shared destiny through interconnected global economies.
