Mexico and China are currently commemorating the 50th anniversary of the establishment of diplomatic relations, which were established on 14 February 1972.

The official relationship started a few months after the People’s Republic of China resumed its seat in the United Nations, which it did with strong support from Mexico.

In this half-century, the links between our two countries have evolved rapidly. We share an aspiration to provide a better life for our societies and to strengthen international cooperation to face global challenges. For five decades, Mexico and China have worked together in order to strengthen their bilateral relations.

An important episode occurred in 2013, when a comprehensive strategic partnership was established between the two countries, with the aim of developing the potential of our exchanges in several fields. The communication between legislative bodies represents an important part of the China–Mexico comprehensive strategic partnership, and is strongly expressed in the Mexican Senate’s long-held stance of upholding the one-China principle and maintaining non-interference in China’s internal affairs, creating a solid foundation of the long-standing friendship between both countries.

China and Mexico have maintained close and friendly exchanges at all levels, and the development of bilateral ties has maintained a good momentum. China and Mexico are already working, under the joint guidance of our two heads of state, to further align development strategies, and cultivate new growth points for cooperation in emerging areas such as clean energy, e-commerce, smart cities, and satellite aerospace.

Mexico attaches great importance to deepening its comprehensive strategic partnership with China, which is a priority for Mexico’s diplomacy.

Overview of the Current Relationship Between Mexico and China

50 years after the establishment of diplomatic relations between Mexico and China, and nine years after the start of our Comprehensive Strategic Association, the relationship between our countries is stronger than ever. China is Mexico’s biggest trading partner in the Asia-Pacific region, its second-largest trading partner in the world, and its third-largest export market.

The Comprehensive Strategic Association between Mexico and China governs a bilateral agenda promoting investment, trade, tourism, and connectivity; ensuring a fluid political dialogue; and supporting academic exchanges and cooperation on technical and scientific development.

According to figures from the Observatory of Economic Complexity (OEC) and the Central Bank of Mexico (Banxico), bilateral trade between Mexico and China 25 years ago was close to 550 million dollars and in 2021, all-time highs were reached, exceeding 110 billion US dollars, an increase of 200 times over that period. And this upward trend continued in 2022, which saw an increase of 27% compared to 2021, marking a new historical record.

Foreign Direct Investment (FDI) by China in Mexico has been similarly very strong. Despite the COVID pandemic, Chinese FDI in Mexico almost doubled between 2020 and 2021, going from 215.3 million dollars in 2020 to 413.8 million dollars in 2021. Like trade, in 2022, investments have continued on an upward trend and many new relocation projects have been completed. And yet, according to studies carried out by the National Autonomous University of Mexico (UNAM), China’s Foreign Direct Investment in Mexico represents only 0.2% of the total FDI that reaches Mexican soil. Without a doubt, there is a lot of room to strengthen business relationships between China and Mexico.

Mexico in the Digital Economy and Electronic Commerce

According to the OECD, Mexico has huge opportunities to develop computer skills and digital experience—and to increase mobile coverage—which is essential for most digital tools and creates technology-rich environments that enhance proficiency in literacy, numeracy, and problem-solving.

A quick look at Mexico’s fundamentals speaks loudly of its huge potential, as an economy, and as an investment partner. Over half its population is under twenty-nine years of age, which offers a huge consumer base and driver of productivity. Second, its location. As part of North America and Latin America, with vast transportation links by land, air, and sea with our neighbours to the north as well as a natural connection with our partners to the south, we are at the centre of our great continent. And last but not least, we have free trade agreements with 50 countries throughout the Americas and around the world. Launched in 2020, the US–Mexico–Canada Agreement (USMCA) is a unique replacement and improvement of the old North American Free Trade Act (NAFTA), which turned Mexico into the manufacturing power-house it has become today, whilst the new version of the USMCA provides greater certainty and unprecedented protection to foreign investors operating from Mexico.

SMEs in Mexico, a universe of 4.49 million micro, small and medium-sized enterprises (MSMEs), which are responsible for the majority of employment, were highly impacted by COVID. About 95% of Mexican companies are categorized as SMEs, representing over 70% of formal jobs. But microenterprises—those with fewer than ten people—are also part of the backbone of Mexico’s economy. 97% of SMEs are microenterprises and employ 47% of the country’s workforce, contributing 64% of GDP.

Nevertheless, running together with our new trade agreement in North America, the COVID pandemic has dramatically highlighted the need for Mexico and its SMEs to innovate in order to remain competitive, and in the twenty-first century, that means going digital. The transition towards a digital economy and society has the potential to spur innovation, enhance productivity, and improve the well-being of the people—providing SMEs with new opportunities to participate in the global economy, innovate, and grow. Demonstrating how important this transition could be, a 2020 International Data Corporation (IDC) survey estimated that accelerating digital adoption amongst Mexico’s SMEs could add 65bn US dollars to the economy.

But achieving that deeper digital infrastructure is a challenge, and cooperation with China is key. For example, when we talk about the penetration of digital payments, 88% of payments in Mexico are made in cash whilst in China this number is only 6%. More generally, China has done an exceptional job in developing and using online platforms to drive significant changes and progress, a best practice that Mexico needs and wants to replicate.

We are looking at China as an example of how e-commerce and messaging platforms can lead to more digital payments. The Chinese example is more integral, permeating digital elements into every aspect of commercial activity. Large internet firms in China like Baidu, Alibaba, and Tencent (together commonly called BAT) have successfully driven broad digital adoption throughout the country. By the early 2010s, they had already made e-commerce an important channel for consumers, providing consumers with a digital experience.

Learning from China and Asia’s best practices, in September 2019, Banxico launched a new payment platform, Cobro Digital (CoDi), as part of the government’s “Program to Promote the Financial Sector”. It uses a combination of smartphones and QR technology in a new system based on models used widely in China. Banks that join CoDi are able to offer access to their customers via their own app. This system had a complicated start for several reasons, but access is improving.

Our cooperation with China has also enabled us to connect and share knowledge in this regard, exemplified by an initiative led by the Office of Foreign Affairs of Chongqing, which organized a workshop to train local government officials in Mexico in digital skills and e-commerce. This 120-h virtual workshop was offered by the Chongqing University of Technology and Business and represents an important strategy for the development of technical capacities in Mexican state and municipal authorities.

Online platforms have the potential to drive significant change in Mexico, as has been the experience in China. They provide SMEs with local and national access to sell goods and services online and secure financing. Widespread digitalization in this regard has helped China’s economy withstand the pandemic better than Mexico’s. Extending the country’s digital infrastructure beyond dense urban centres can also better distribute economic benefits, and what better way to achieve this than by developing strong and continued cooperation with China in this regard.

Science, Technology, and Innovation as Mechanisms to Modernize the Economy

China’s remarkable efforts to maintain its economic growth, strengthen supply chains, develop strategic sectors like science, technology, and new industries, lead various cutting-edge sectors in the Fourth Industrial Revolution, and achieve remarkable successes in the field of science and technology in record time, have depended, to a large extent, on its ability to cultivate and implement an ambitious public policy plan aimed at building an innovative, sustainable economy with greater weight given to high value-added activities.

In light of Chinese achievements, it is of great interest for Mexico to learn about the strategies that China has been implementing in the development of S&T (science and technology), its efforts to successfully invest in R&D, and the incorporation of new technologies into the industry to address innovation challenges and other difficulties it faces. This brings broad possibilities and opportunities for bilateral collaboration.

Just to note a few of China’s recent achievements in these fields, I would first like to point out that according to the 2022 Global Innovation Index, China ranked 11th, up from 43rd two decades ago. And now, for the first time, it has positioned itself as one of two countries with the largest number of S&T clusters in the world.

Secondly, over the last two decades, China has implemented technological megaprojects, such as the C919 commercial aircraft, which is slated to compete in the aeronautical market, the development of maglev train technology, the announcement of the most powerful computer in the world Tianhe-3, the construction of the world’s longest bridge, landing on the far side of the moon, and the recent landing of the Zhurong robot on Mars.

Third, I would like to underline China’s goal to become a scientific and technological powerhouse by 2049. In pursuit of this goal, China has allocated significant resources and support to initiatives designed to attract and ensure the development of talent in S&T related fields. According to the National Bureau of Statistics, the government invested $441.3 billion, or 2.4% of China’s GDP, in R&D in 2020, an increase of 14.2% from the previous year. And according to the Organization for Economic Cooperation and Development (OECD), China is the second-largest R&D spender in the world.

For Mexico, which is looking to boost and enhance its technological capacity, it would be helpful to strengthen cooperation with China in areas such as Big Data, IoT (Internet of Things), digitalization, and the use of digital payments, thus helping to expand the application of technology across sectors with fewer opportunities and driving social and economic progress. This is why the governments of the People’s Republic of China and Mexico, through the Science and Technology Subcommittee of the Permanent Committee, are exploring ways to develop closer cooperation, promote exchanges of students and researchers, whilst also implementing joint projects and potentially opening laboratories and research centres devoted to topics of mutual interest.

The governments of Mexico and China have all the mechanisms and opportunities to take the next step in bilateral cooperation and hopefully will continue having seminars, research, joint programs, and innovative projects that provide a great deal of added value.

Strengthening Educational Exchanges and Language Teaching to Bring People Closer

To continue strengthening the bridge of friendship, collaboration, and economic and social development between China and Mexico, we rely on educational cooperation at all levels, including researchers in the hard, social, and technological sciences. Whilst efforts have already been made in this area, including Mexico hosting five Confucius Institutes (second highest number in Latin America), there are still significant opportunities to enhance our educational collaboration. In this spirit, Mexico is currently supporting the opening of the 6th Confucian Institute at the Universidad Veracruzana, with the support of the University of Changzhou.

According to studies carried out by UNAM, at the moment most of the scientific collaboration between China and Mexico is in the fields of physics, astronomy, and astrophysics, and a significant amount of this takes place in multinational enterprises, which showcase the opportunities to generate more initiatives that enable direct cooperation between researchers and robust and intense academic exchanges between our countries.

As part of a new era of collaboration, China and Mexico are developing an initiative titled “Young people Building the Future, China Chapter” which organizes young people from Mexico to do internships in Chinese companies in Mexico or in Mexican companies with a presence in China, whilst at the same time, studying the language, culture, and history of China, all within Mexico. In a second stage, it is expected that the participants can travel to China to do similar practices. The project is supported by the Ministry of Labor and Social Welfare in Mexico, the Mexico–China High-Level Business Group (GANE), the Confucius Institutes in Mexico, and UNAM.

Additionally, it is important to highlight the Bilateral Scholarship Program launched between the two countries with scholarships from the Government of Mexico to students from China. In this context, an event on educational cooperation between the Pacific Alliance (PA) and China was held, which Mexico coordinated together with the China Association for International Exchanges (CEAIE) and the other Embassies members of the PA in China.

The Presence of Mexico in Multilateral Organizations

Mexico and China have also strengthened cooperation at the regional and multilateral levels. In forums such as the G20, which brings together the world’s leading economies, both countries have promoted equitable access to COVID-19 vaccines, their recognition as a global public good, and the global approval of vaccines recognized by the World Health Organization.

Within the framework of the UN, Mexico and China have in this period coincided as members of the Security Council, an opportunity both countries have used to reflect their multilateralist positions on issues such as poverty reduction, disarmament, and non-proliferation.

At the regional level, it is important to note the joint work in the Forum of the Community of Latin American and Caribbean States (CELAC)-China, which was held during Mexico’s pro-tempore presidency of CELAC. The forum allowed the exchange of experience in science, technology and innovation, agriculture, traditional medicine, poverty reduction, and development. These efforts successfully culminated in the Third CELAC-China Ministerial Meeting in December 2021.

China promotes multilateralism, while Mexico also has an old and well recognized multilateral position that recognizes the potential of fostering communication and positive engagement amongst nations. Our government has actively defended its foreign policy interests, always through a clear willingness for negotiation and strong confidence in international cooperation. This has been key in collaboration during several meetings held by international organizations headquartered in China.

We believe that China and Mexico are good friends and good partners. China–Mexico relations have developed in a holistic way, as evidenced by the sound momentum in multiple areas of cooperation, as well as the close coordination we have maintained on international and regional issues, making significant contributions to world peace and the promotion of common development.

The strong resilience of our pragmatic cooperation, including vaccine cooperation in the fight against COVID-19, both countries have an interest to better synergize development strategies, deepen people-to-people exchanges, and enhance coordination to jointly promote multilateralism.

Joint Efforts in International Development to Advance the United Nations Sustainable Development Goals in a Post-COVID-19 Context

Over the past two years, cooperation between Mexico and China has become more relevant in the fight against the COVID-19 pandemic. Amongst the most tangible results of this was the valuable support received from China in the initial stage of the crisis, which ensured access to medical equipment and supplies for the health sector and facilitated vaccine clinical trials in Mexico.

Thanks to this support, Mexico has access to Chinese vaccines produced by CanSino, Sinopharm, and Sinovac, whilst also engaging in productive exchanges on pandemic control strategies. Mexico will always remember the solidarity and support China provided during the most difficult parts of the pandemic. Mexico and China are two dynamic countries that can “challenge” existing normative views on regimes, governance, and institutions.

We now need to consolidate our significant but still modest trade and investment relationship, and to that end, we hope to increase capital flows to contribute to a sustainable and innovative development.

Strategically, China is a global leader in the effort to tackle climate change and achieve UN Sustainable Developmental Goals (SDG), paving the way for recognition, both domestically and internationally. Mexico, for its part, is also committed to developing initiatives that pave the way for achieving the SDGs, such as issuing the world’s first sustainable sovereign bond linked to the UN SDGs.

Mexico and China share a mutual commitment and unique expertise in sustainable, low-carbon transformation, which has increased participation by both countries in environmental forums. This includes events led by the UN and the China Center for International Economic Exchanges (CCIEE), which explore how financial instruments can help tackle climate change, whilst also promoting cooperation between China and Mexico based on best practices and global advancements that are leading the transition towards a net zero emissions economy.

Future Perspectives

Mexico and China should recognize the fundamental strategic value they have for each other. Despite the distance between them, they are ideal partners as they are located at the centre of opposite halves of the world.

2023 will be essential in consolidating the new global sphere in the emerging post-COVID context. Mexico and China are perfect allies to work within this new reality, expanding and consolidating their association in global and regional supply chains, particularly where new technologies are involved, which will increasingly be key for economies to develop and their peoples to thrive.

Each country has its own strengths. By combining our efforts, the achievements we can make are limitless. For example, China’s progress in developing its strategic science and technology sectors is a milestone that should be recognized. With vision and determination, in a few short decades, China has become a major global technology leader and generates the most patents of any country annually. It has the world’s second-largest nominal GDP in current dollars and in terms of purchasing power parity (PPP). Of particular note is how China has successfully achieved a digital financial revolution, thus making the country a pioneer in the digital economy. All of this has contributed directly to the phenomenal economic growth China has seen and its admirable eradication of poverty.

However, reflecting its economic size, China needs to continue diversifying its production geographically, and Mexico is an outstanding prospective strategic partner in the Western Hemisphere, with its competitive labour force, thanks to its role as an important manufacturing nation. It is also located in the middle of the “rest of the world” as seen from China, with vast logistical links within North America and a core part of the thriving region that is Latin America and the Caribbean, not to mention its network of free trade agreements with more than 50 countries. What better base of production and operations for a Chinese company in the New World.

Mexico, its government, producers, and its people, need and are ready to strengthen our friendship and business relationship with China, which, despite already being our largest trading partner outside North America, has huge untapped potential in absolute numbers in both trade and investment.

This year, we celebrated the first 50 years of diplomatic relations between China and Mexico. And we are just a few decades away from celebrating half a millennium since the Manilla Galeon started making its round-trip passage across the Pacific Ocean twice a year, exchanging not only silver and chilies for Chinese porcelain and spices, but more importantly linking our countries and cultures, in those centuries when China’s only communication with the Western Hemisphere was through Mexico. No wonder we both share fundamental tracts that define us, such as the way the Mexican and Chinese people cherish family, and how they honour their departed ancestors in their respective and otherwise unique major festivals.

The foundation for developing our business, cooperation, and cultural relations and the friendship between our peoples is clearly there. Important as 2022 was for us to celebrate the past 50 years of formal diplomatic ties with China, I am sure that this year will see even more important celebrations of moving forward, welcoming the first year of the next century of friendship with China, with both of us determined to make our links ever more substantial across the board.