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In Depth: How Chinese factories are finding their way to Mexico

Proximity to U.S., low-cost labor and tax incentives boost investment

Mexico is becoming the new place to go for Chinese manufacturers looking to relocate from the mainland.

Chinese manufacturers are increasingly setting their sights on Mexico for bringing production closer to the American market, reflecting the higher costs of Chinese exports under U.S. tariffs and disruptions to global supply chains due to the pandemic.

The 2018 trade war between China and the U.S. was a catalyst in a manufacturing exodus from China, as rounds of tariff levies almost wiped out the narrow profits of garment and furniture manufacturers, forcing many to move abroad.

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