BBC News: How Chinese firms are using Mexico as a backdoor to the U.S.

MONTERREY, Nuevo León – The reclining armchairs and plush leather sofas coming off the production line at Man Wah Furniture’s factory in Monterrey are 100% “Made in Mexico”.

They’re destined for large retailers in the U.S., like Costco and Walmart. But the company is from China, its Mexican manufacturing plant built with Chinese capital.

The triangular relationship between the U.S., China and Mexico is behind the buzzword in Mexican business: nearshoring.

Man Wah is one of scores of Chinese companies to relocate to industrial parks in northern Mexico in recent years, to bring production closer to the U.S. market. As well as saving on shipping, their final product is considered completely Mexican – meaning Chinese firms can avoid the U.S. tariffs and sanctions imposed on Chinese goods amid the continuing trade war between the two countries.

Editor’s Note: Click here to read the full story by the BBC’s Mexico correspondent, Will Grant. 

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