Mexico has surpassed China and Canada to become the United States’ largest trading partner, according to recent statistics. In the first four months of this year, trade between the US and Mexico reached $263 billion, accounting for 15.4% of the US’s total trade. This shift can be attributed to the “U.S.–Canada–Mexico Trade Agreement” signed during former President Trump’s tenure, which promotes a practice known as “nearshoring” in global trade. Nearshoring involves bringing supply chains for essential goods closer to countries that are physically and politically close. This practice reduces reliance on long-distance offshore supply chains and poses a challenge to China’s economic status. China, which was the US’s largest trading partner for most of the 2010s, was replaced by Mexico in 2020 due to various factors, including the COVID-19 outbreak and disruptions in global supply chains. China’s exports have been declining, and many Chinese companies are now establishing factories in Mexico to relocate their production. The tensions between the US and China have also contributed to the derisking from China by western countries, impacting China’s foreign trade. The future of US-China relations remains uncertain, and maintaining contact and communication between the two countries can help prevent the situation from escalating. China’s economy heavily relies on exports, investments, and consumption, all of which have been declining. Low-end manufacturing is being relocated to countries like Vietnam, India, and Mexico, while high-end manufacturing is affected by increased US sanctions, especially regarding the export of high-end chips to China. These factors pose challenges to China’s economy.