U.S. and Chinese Companies Expand Nearshoring Operations in Mexico

Mexico Attracts More Nearshoring Investments Amid U.S.-China Trade Tensions

CIUDAD JUÁREZ, Chihuahua, Mexico – Amid ongoing U.S.-China trade tensions, multinational companies, including American and Chinese firms, are increasingly turning to Mexico for their manufacturing needs. The strategic shift towards nearshoring has led to a surge in foreign investment in Mexico, with benefits such as tariff-free trade zones and lower labor costs compared to China.

In 2023, the value of goods imported from Mexico to the U.S. surpassed that of China for the first time in over two decades. The U.S. Commerce Department reported a rise to over $475 billion in imports from Mexico, while imports from China fell to $427 billion. This shift is driven by companies seeking to reduce supply-chain risks and production costs while remaining close to the U.S. market.

Chinese manufacturers have also recognized Mexico’s advantages, with over 1,300 Chinese companies now operating in the country. Monterrey has become a hotspot for nearshoring investments, attracting numerous multinational corporations with its extensive industrial infrastructure and manufacturing expertise.

Resumen en Español:

En medio de las tensiones comerciales entre EE.UU. y China, las empresas multinacionales están aumentando sus inversiones en nearshoring en México. Los beneficios incluyen zonas de comercio libre de aranceles y costos laborales más bajos en comparación con China. En 2023, el valor de las importaciones de México a EE.UU. superó al de China por primera vez en más de dos décadas, con más de 1,300 empresas chinas operando ahora en México.