U.S. dumps China for Mexico?
Mexico did not have an extreme economic makeover, but the global recession was enough to defeat China as the number one place for American assembly-for-export factories, or maquiladoras.
Since a few years ago, I always strongly believe that China must undergo a fierce makeover to become a real economic or even military powerhouse. The 2008 Olympics was almost one of them, but it wasn't; the 2009 National Day of the regime's 60-year Anniversary wasn't one, either.
It could come from both inside and outside; like mentioned in this CNN article: Renminbi (Chinese dollar) appreciation due to the current purchasing and bargaining power, as well as competition from countries like India and Mexico.
In fact, Mexico is not a new manufacturing partner of the US; it was there many years ago, but the US "abandoned" them and turned to China in pursuit of China's internal demand market.
As it proves that the internal demand market is not as large as the Americans had imagined, and the competitors of China are catching up in terms of lower cost, shorter supply chain and, now they know it, the freedom of information exchange, the competitive advantage of China could fall somehow, and eventually reach the "makeover point" I described.
The thing is, I wish China could safely go through the change and become a powerful yet peaceful economic animal, rather than using military or suppressing force to eliminate interior affairs, or the worse: reaching out to find the solution from turning the focus to the rest of the world.
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