How Chinese firms are using Mexico as a backdoor to the US

Chinese firms are increasingly turning to Mexico as a strategic entry point into the lucrative US market. By establishing operations in Mexico, these companies are able to take advantage of the close proximity to the US while also benefiting from Mexico’s lower labor costs and more favorable trade agreements.

One of the key reasons why Chinese firms are choosing Mexico as a gateway to the US is the US-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA). The USMCA provides more favorable trade terms for companies operating in Mexico, making it an attractive destination for Chinese firms looking to access the US market.

Additionally, Mexico’s skilled workforce and competitive manufacturing sector make it an appealing location for Chinese firms looking to establish production facilities. By setting up operations in Mexico, these companies can take advantage of the country’s lower labor costs and proximity to the US market.

Overall, the trend of Chinese firms using Mexico as a backdoor to the US is expected to continue as companies seek to diversify their supply chains and access the US market more easily. This strategic move highlights the importance of Mexico as a key player in the global supply chain and as a valuable partner for Chinese firms looking to expand their reach into the US.