MEXICO CITY (AP) — Mexico is looking to penetrate the Chinese market after a new report suggested that Mexican labor costs have fallen below those of China.
President Enrique Pena Nieto visited Hong Kong on Friday, and said "I am convinced that Mexican products should take advantage of the dynamism of China's markets."
Just a decade ago, Mexico's prospect of exporting much to China seemed distant. Mexican average labor costs were then almost double China's.
But a report by a chief economist for Bank of America Merrill Lynch this week estimated that Mexico's labor costs are now 19.6 percent lower than China's.
The study by chief economist Carlos Capistran cites the bank's own estimates and official data indicating that a big increase in China's costs have turned the balance.