Foreign investment flows in Baja California as the state government combats to keep equipment in Mexico’s battle against highly infectious COVID-19, and workers protest over their safety.
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Medical supply manufacturing continues to thrive in Baja California even as workers protest over health safety issues.

Dialogo Chino reported that as the pandemic has dramatically augmented worldwide demand for medical supplies and equipment, Baja California stands to economically benefit from this demand. However, the lack of health workers and other "scarcities" in Mexico have contributed to its having one of the highest death rates due to COVID-19 globally.

Manufacturers in states, like Baja California, in the country's northeast part, have been making crucial medical equipment like catheters, syringes and disposable intravenous. However, they are produced not for local use, but export to other nations and this infuriated the local officials.

In April, there occurred a conflict when Baja California Governor Jaime Bonilla Valdez accused Smiths Medical. This multinational company manufactures ventilator parts, of the declining sell of medical equipment to the government.

This took place several weeks after Mexico reached its peak COVID-19 contagions while still having one of the highest numbers of cases and deaths in the country.

Manufacturer Refused Local Sale of Medical Equipment

During a daily report, the governor explained to citizens that if Smiths Medical would refuse to sell medical supplies to the state, its status as an essential business would then be lost.

The governor addressed citizens in one of his daily reports and explained that if the company would not sell medical equipment to the state, then it would lose its status as an essential business. Afterwards, he indeed shut down the company's operations.

By end-April, the same government leader announced, the medical equipment manufacturer could reopen and start operations again.

This was after the executives from transnational firms and the state government agreed that a portion of the produced equipment would go to the hospitals in Baja California.

An Opportunity that cannot be Missed

According to the secretary of the economy of Baja California, Mario Escobedo, "developing the medical equipment industry" while this global health crisis is active, is "an opportunity that cannot be missed."

The secretary added, while other businesses elsewhere are paralyzed, in Baja California, they are set to open as the Mexican state opens its doors.

Meanwhile, news reports said, two companies, Centerpiece and Medline, both North American firms which manufacture sterilization machines and other medical supplies, have already announced they were investing "nearly $200 million in Baja California."

The industry in Baja California has increased by up to 10 percent annually for the last five years, with up to $800-million investments.

Both firms have selected the locations, specifically in Mexicali and Tijuana, the two largest cities of Baja California.

Aside from its being an export-friendly business venue, Baja California has a lot of experience as well, in the medical equipment business.

At present, there are more than 70 factories of either manufacturing or assembling medical devices. Of all these seventy-plus factories, Baja California Medical Products Cluster said, 48 are located in Tijuana, producing around 49,000 direct employments.

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