Several Chinese companies are investing in Mexico. Taking advantage of an expansive trade agreement with North America (T-MEC) and following a path forged by Japanese and South Korean companies, a number of Chinese firms have set up factories that enable them to label their products as “Made in Mexico” and then transport them duty-free to the United States. This trend is known as “nearshoring,” and involves international companies bringing production closer to customers in order to limit transportation problems and geopolitical tensions.
Man Wah, one of China’s largest furniture companies, decided to build a $300 million factory in the desert strip of northern Mexico. Meanwhile, Lizhong, a Chinese automobile wheel manufacturer, is building a factory in an industrial park in Nuevo León, motivated by pressure from Ford and General Motors, its main customers. In 2021, Chinese companies were responsible for 30% of foreign investment in Nuevo León, highlighting Chinese interest in not abandoning the US economy by setting up operations within the North American trading bloc
Top Headline:
El País, Goodman, P. (2023). China mira hacia México para satisfacer al mercado de EE.UU.
Find out more:
El Tiempo. Barría, C. (2023). El boom industrial que ve a México como alternativa al “Made in China”.