Mexico Now Feels Pinch of Cheap Labor: An Economy Built on Low Wages Finds Itself Undercut by Influx of Chinese Imports By Mary Jordan:

"Many people see China as a big threat, and obviously it is," said Alejandro Dieck Assad, an economist and top official in Mexico's Finance Ministry. "But China is also simultaneously a big opportunity." He said competition from China could be just the push Mexico needs to accelerate its transition from low-skilled assembly work to more lucrative manufacturing jobs -- less sewing of garments and more fabrication of electric circuits. Dieck said Mexico could also benefit by seeking opportunities in the growing Chinese consumer market and by attracting Chinese tourists to Mexican beaches.

Still, finding on'es comparative advantage ain't easy.