Foreign investors will not leave China: Mexican Chamber

Despite rising concerns that some foreign companies might move their supply chains out of China when the novel coronavirus (COVID-19) outbreak ebbs, most investors have privately said they have confidence in China’s huge market.

“Given China’s population, domestic market consumption, political and social stability, and increasing mature business ecosystems, I don’t expect companies will move out their supply chains in the short term,” Victor Cadena, vice president of the Mexican Chamber of Commerce in China, said in an interview with the Global Times.

As China has shown signs of economic recovery since the coronavirus outbreak, Cadena expects foreign companies are unlikely to move their supply chains away from China.

China-Mexico trade has grown, even though foreign imports and exports fell due to the outbreak. According to statistics from China’s Ministry of Commerce on Wednesday, in East China’s Fujian Province alone, imports and exports with Mexico during Q1 2020 reached $711 million, a 22.8 percent increase year-on-year.

Although China’s economy was impacted by global supply chain disruptions, signs of recovery have emerged, and it will only be a matter of time before the country gets back on track, Cadena said.

“China represents one-third of world’s economic growth, so it is in the interests of everyone worldwide that China’s economy recovers as soon as possible and vice versa, as we live in a multilateral economy,” Cadena said, adding that China’s policies for fostering and welcoming foreign investment have been opening up gradually and continue to improve each year.