The supply chain sector encompasses the entire system involved in producing and delivering products or services, starting from raw material sourcing to the final delivery to consumers.
This includes suppliers, manufacturers, transporters, retailers, and customers, all of whom play critical roles in ensuring the efficient flow of goods and services.
We have written before about how Chinese manufacturers have headed in droves to Mexico fueled by factors such as the US-China trade war and the desire to access the US market duty-free.
By establishing manufacturing facilities in Mexico, primarily in northern states near the US border, Chinese companies can leverage the USMCA agreement to label products "Made in Mexico" and export them to the US tariff-free, bypassing US tariffs on Chinese imports. This strategy has led to a significant increase in the number of Chinese companies operating in Mexico, reaching 1,294 by mid-2022.
The influx of investment from both China and Hong Kong is beneficial for Mexico. Establishing manufacturing hubs in Mexico helps mitigate supply chain risks, reduces transportation costs, and shortens lead times to the US market.
You can read the full post here.
We decided to take a look at alternative supply chain approaches and developed the following infographic.
About Ivan Theodoulou
Ivan Theodoulou is founder of Eight PR, a PR agency in Hong Kong that specializes in tech, law, and corporate PR. He first visited China in 1987 by train from Hong Kong to Guangzhou and has since traveled extensively on the mainland and in the Greater Bay Area (GBA). Ivan passed his China driving test in March 2024 and now drives regularly in the GBA.