Have you ever wondered what China and Mexico have in common apart from being the countries that introduced the world to two delectable cuisines? Well, it turns out that these two diverse countries that are miles away from each other have another common thread cutting through their combined histories, and that is-migration. This commonality reverberates in the fact that both China and Mexico happen to be amongst the Top 5 remittance receiving countries in the world, as per World Bank Data. Migration and money remittance play a huge role in shaping up these countries’ socio-economic fabric.
Outward bound migration from both these countries began in the 1970’s; while the most prevalent corridor from Mexico was to neighbouring USA, China saw its people move to Australia, Americas, Africa and to SouthEast Asia. And the history of international money transfers to these countries traces back to then.Lack of employment opportunities, political unrest and the pressure of an increasing population are all contributors to the waves of migration that both these nations have seen over the years.
As of 2014, China is the second highest remittance receiving country in the world, having received $64 billion dollars in global money transfers. Mexico, which is at the 4th position is estimated to have received $25 million dollars. World Bank data says that between 2014 – 2017, remittances to both developing and high-income countries will grow by 8.3% reaching a total of $636 billion in 2017. Needless to say that the remittance sector in both these countries is thriving, as more and more money transfer service companies look to expand their presence in these countries to tap into this high growth sector. In 2014, Xpress Money made a foray into both China and Mexico, by way of strategic partnerships.
“China and Mexico may seem disparate in the first instance, but when compared under the looking glass of international migration and the money transfer sector, they are strikingly similar.” said Sudhesh Giriyan, COO- Xpress Money. He added, “While in the early days one saw mostly unskilled labour migrating abroad from both these countries, today the scenario has changed. We now see more educated and skilled workers migrate to foreign countries. The thought behind this migration is singular – the search for a better future and improved standard of living. The other common factor binding these two countries is the fact that no matter how long they have been away from home, both Chinese and Mexican migrants send money home to their families back home very regularly.”
The remittances, which come into these countries by way of instant money transfer in cash or by way of bank account credits is used for family maintenance, which includes basic expenses of living, healthcare and education and upkeep in most cases. However, in China a lot of times these money transfers also help fuel entrepreneurial ambitions. With the introduction of innovative ways of money transfers, such as payments through social networks and even mobile wallet service, the money transfer industry is all set to get a further fillip in these two nations.