How Chinese factories are finding their way to Mexico – Economic Times


A worker inspects the copper wires for export at a factory in Hengfeng county in central China’s Jiangxi province Sunday, August 07, 2022.


Apart from traditional south-east Asian destinations for relocating manufacturing from China, Mexico is becoming a new alternative, offering proximity to the US, lower labour costs, and access to preferential tax treatment under the US-Mexico-Canada free trade agreement.

Chinese manufacturers are increasingly setting their sights on Mexico for bringing production closer to the American market, reflecting higher costs of Chinese exports under U.S. tariffs and pandemic-related disruptions of global supply chains.The 2018 trade war between China and the U.S. was a catalyst in a manufacturing exodus from China as rounds of tariff levies almost wiped out the narrow profits of the garment and furniture manufacturing

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