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From the big business of Mexican industrial manufacturing to the small kiosks of the nation’s rampant informal sector, China’s impact is acute. In 2013 Mexico reported a trade deficit with China of $56 billion, and that over 900,000 manufacturing jobs had been lost to Chinese competition. To improve this situation, Mexican small business associations, manufacturing groups, and entrepreneurs in the Chinese diaspora argue that the federal government should more actively support public-private partnerships to connect suppliers, exporters, and importers. Others disagree, arguing that the trust necessary for economic cooperation is undermined by intrusive regulations and state intervention. Through cases from the automobile, education, and small-business sectors, the chapter demonstrates that trust and state support can be an effective combination that produces positive results. Mexico’s problems with China will not be solved simply through more government, but bilateral trade, investment, and cooperation could be improved through more assertive policies of domestic and foreign engagement.

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