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Chinese companies using Mexico as gateway to enter US market.

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Chinese companies using Mexico as gateway to enter US market.

In Monterrey, Mexico, the Man Wah Furniture factory is churning out armchairs and sofas labeled as “Made in Mexico” for major US retailers. This company from China strategically set up manufacturing in Mexico to circumvent US tariffs and sanctions imposed on Chinese goods amid the ongoing trade war. The phenomenon of nearshoring – bringing production closer to the US market – has seen a surge in Chinese companies relocating to northern Mexico, creating a buzz in the Mexican business landscape.

General manager Yu Ken Wei of Man Wah Furniture aims to significantly increase production in Mexico, praising the hardworking Mexican labor force and the logistical advantages of operating in the country. With a growing trend of Chinese investment in Mexican industrial parks and US companies also establishing facilities in the country, Mexico finds itself in a strategic position between the two superpowers amidst global trade tensions. While some caution against Mexico getting caught in the crossfire of US-China geopolitical struggles, others see nearshoring as an opportunity for Mexico to leverage its economic advantages in the changing global trade landscape.

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