China is using mexico as a major weapon against the US...


China is attempting to reach America via a different channel in the midst of the trade conflict. china uses mexico as a conduit for the sale of its goods to America. He is profiting greatly from this as well. china is actually finding a means to conduct business in America through other nations because the united states has placed heavy taxes and restrictions on a large number of Chinese enterprises. 'Man Wow' is the name of a furniture manufacturer that supplies American stores Walmart and Costco. As to the report by the BBC, this Chinese company was founded with Chinese money and is currently producing its goods in Mexico. However, every product has the label "Made in Mexico."  In the Mexican context, this triangle business is known as "nearshoring."

Trick for avoiding US sanctions

The company has a plant in Northern mexico, which is close to America, and produces furniture for the American market. The study claims that this has resulted in a considerable decrease in Chinese enterprises' shipping expenses. Chinese businesses are also avoiding being caught in US tariffs by using this tactic. There is also a trade conflict between the two nations. Notwithstanding the fact that nearshoring is helping mexico, many think it is either an expensive power struggle between the two countries or an attempt to break into the American market through the back door.

Yu Ken Wei, general manager of Man Wow Company, states that moving the production line to mexico has helped us. The corporation is anticipated to be able to raise production by three and four times. There are 450 people in mexico at the moment, but that figure might rise to 1200 as the company plans to add more production lines. Plot costs have gone up in the Chinese Mexican Industrial Park because Man Wow's sofa plant is located there.

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