Chinese Manufacturers Get Around US Tariffs With Some Help From Mexico (Bloomberg)
- Although the cost of materials and labor is generally higher in Mexico than in China, the gap has been shrinking over the years, with wages in China growing at a more rapid clip.
- Still, countries in Asia such as Vietnam and Thailand appear to be taking up a large chunk of manufacturing investment that might have once gone to China.
- Chinese businesses are less likely to be spooked by AMLO’s habit of railing against foreign companies, given that many have experience operating in emerging markets.
- Yet, unlike China, Mexico doesn’t boast extensive networks of suppliers across a large number of industries. READ MORE
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