Mexico And China's Trade Balance Deficit Research

China today is Mexico's third largest trading partner and Mexico is China's second largest trading partner in Latin America.Because China's imports to Mexico are much higher than Mexico's exports to China,many economists have studied their trade relations.In 2017,Mexico's exports to China amounted to 6.7 billion U.S.dollars.In the same year,Mexico's imports from China amounted to 74.1 billion U.S.dollars,which means that the balance of trade deficit was 67.4 billion U.S.dollars,and 85% of these import figures were imported by Mexico's manufacture sector,mainly intermediate product,which are integrated to finished products that at the same tiem will be exported by Mexico.Based on the above,it can be concluded that the government must correct a large number of deficits in the trade balance.This article first introduces the related concepts,significance,structure,surplus and deficit concepts of the international balance of payments,elaborates many factors that affect the balance of payments,and summarizes the major adjustment theories of international payments;secondly,it analyzes the trade balance between Mexico and China.Discusses the balance of payments deficits and their causes from the perspective of the structure of its imports and exports,industry status,and international trade cooperation.Then according to the Marshall-Lerner condition,if the import and export elasticities of the two countries are greater than one,the actual depreciation of the currency will be The balance of trade has been improved because,in the face of devaluation,the real exchange rate has increased and the export price has fallen,which has led to an increase in demand and a decrease in domestic import demand.The satisfaction of this condition means that the depreciation of the real exchange rate will bring about an increase in the country's competitiveness and lead to an improvement in trade balance.Therefore,the verification of Mexico's import and export elasticity shows that the devaluation of the currency can improve trade balance.Finally,the paper includes bilateral trade relations,Mexico's and China's import and export structure and appropriate currency devaluations perspectives to put forward concrete measures to improve the trade balance between Mexico and China.