What would Mao do?
Ground-breaking ceremonies were held in Mexico a few days ago for North America's first Chinese car plant. In slightly over two years, GM will have another competitor to worry about.
From Signs on San Diego's Investors break ground on first Chinese car plant in Mexico :
Construction began Friday on an auto assembly plant in central Mexico that will create thousands of jobs and be the country's first to produce Chinese cars.Mexican economic development authorities had to be overjoyed. Anything to employ Mexicans in Mexico is good news.
Mexican President Felipe Calderón led groundbreaking ceremonies for the factory, which will be financed by an arm of Mexican conglomerate Grupo Salinas and China's state-owned FAW Group Corp., one of the nation's largest automakers.
It was good news for those calling on Mexico to provide more domestic employment opportunities. Higher Mexican employment would slow the tide of immigrants from south of the border.
“Most of the world's investments used to go to China, and today China has come to invest in our country because it recognizes an enormous opportunity in Mexico thanks to its domestic market” and proximity to the U.S. and Latin America, Calderón said.
Due to open by 2010 in Michoacan state, the plant is expected to churn out 100,000 cars a year for sale in Mexico and Central America, according to a statement from Grupo Elektra, Grupo Salinas's electronic goods and consumer financing unit.
So China's expanding its car-making into Mexico. The consequences of what this means, if anything, will be debated.
Mao should be turning over in his communist grave.
by Mondoreb
[image:edmunds]
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