I´m analyzing the mechanisms through which competition with a large economy like the Chinese for the US market would improve innovation efforts and other performance indicators in Mexican exporting firms.
Your research question is quite hard to discover. In my view, firstly you have to find out the characteristics of economic relations between China-US, China-Mexico, and Mexico-US. Then, you can analyze the impact of China-US market competition on the Mexican economic indicators based on some particular aspects.
competition will increase specialization, it will increase efficiency- production/ technical efficiency, distribution efficiency, increased welfarism and maximum resource utilization. exporting firms benefits through competitive innovation and increased aggregate demand.