Chinese Firm Man Wah Utilizes Mexican Manufacturing to Avoid US Tariffs
In a strategic move to bypass US tariffs and sanctions amid the ongoing trade war between the US and China, Chinese furniture company Man Wah has set up a manufacturing plant in Monterrey, Mexico. The factory produces reclining armchairs and leather sofas that are 100% “Made in Mexico” but are destined for large US retailers like Costco and Walmart.
This trend of nearshoring, where Chinese companies relocate production to Mexico to cater to the US market, has been gaining momentum in recent years. By manufacturing in Mexico, Chinese firms can save on shipping costs and avoid the tariffs imposed on Chinese goods by the US.
Man Wah’s general manager, Yu Ken Wei, expressed optimism about the move to Mexico, citing the country’s hardworking and skilled workforce. The company, which arrived in Monterrey in 2022, already employs 450 people and plans to expand to over 1,200 employees in the coming years.
The influx of Chinese investment in Mexico has raised concerns about the country being caught in the middle of the US-China geopolitical struggle. While some experts warn of potential risks, others see opportunities for Mexico to capitalize on the trend of nearshoring.
As Mexico positions itself as a strategic hub between the two superpowers, the country’s role in global trade dynamics is evolving. Whether nearshoring proves to be a beneficial strategy or a geopolitical minefield, Mexico’s growing importance in the global supply chain is undeniable.