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Trade war

Chinese factories flock to Mexico, crossing U.S. border to avoid tariffs

Investment surges 76% to $606m as appliance and furniture makers build plants

At least 20 Chinese companies plan to set up operations at Hofusan Industrial Park in northern Mexico. (Photo by Kosuke Shimizu)

MONTERREY, Mexico/GUANGZHOU -- A towering red and silver gate marks the entrance to Hofusan Industrial Park, located in the middle of the desert in the Mexican state of Nuevo Leon about a two-and-a-half-hour drive from the U.S. border. Construction is in full swing at the sprawling site as trucks and cranes whiz around.

The estimated $1.2 billion project broke ground in 2017, a joint effort among Chinese companies Holley Group and Futong Group along with their Mexican partner. Twenty Chinese businesses intend to establish operations there, 10 of which have begun production on site. The project also will include restaurants, hotels and housing.

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