The rise of nearshoring in Mexico has become a significant trend driven by a triangular relationship between the US, China, and Mexico. Chinese companies like Man Wah Furniture are relocating to Mexico to produce goods closer to the US market, bypassing tariffs and sanctions imposed on Chinese goods. This move has brought economic benefits to Mexico, with increased exports and investments in industrial parks. Despite concerns about being drawn into US-China geopolitical tensions, Mexico sees opportunities in nearshoring. However, experts warn of potential risks and urge caution in navigating this complex dynamic. While some view nearshoring as a strategic advantage for Mexico, others express concerns about its long-term implications amid global trade uncertainties. Ultimately, nearshoring represents Mexico’s current advantage in a challenging global trade landscape.
Inspired by: https://www.bbc.com/news/business-68825118